Q: What Does the Economic Future Look Like?

What does the future of our economy look like?

Looking to buy in Alaska?  Get a full home search
 Looking to sell in Alaska? Get a free Home Price Evaluation

Recently, Freddie Mac released a statement saying that the bulk of the economic damage caused by the nationwide shutdowns would be contained within the first half of 2020 and that they expect to see economic relief by the third quarter.

On the lending side, Freddie Mac went on to say that the fiscal stimulus provided by the C.A.R.E.S. Act will mute the pandemic’s impact on our housing market. This is especially exciting because they predict that, after the next four quarters, housing prices should continue to appreciate by 2% or 3%, which is what’s typical for a very healthy market.

Many people fear that our current situation is similar to what happened back in 2008 when the housing bubble burst and that their property values will plummet. However, the economic forecast shows a different view of our financial future—there is a big difference between the financial crisis of 2008 and the public health crisis of 2020. 

There may be some short-term pain, but there will be a long-term gain.

Through January of this year, until the coronavirus hit our shores, we were in a very strong economic position, and the stock market had been on its single longest bull market run in history. In the mortgage community, delinquency rates were near 20-year lows. Those are signs of a really healthy market, and I have confidence that we’re going to see a great recovery.

I do know, however, that this is an unprecedented time and that there’s a lot of fear when it comes to the unknown, but overall, the data shows a positive long-term outlook. There may be some short-term pain, but there will be a long-term gain. 

If you have any questions or would like to speak more about the housing market and economy, feel free to reach out to me. I’d love to hear from you.