What is the best way to prepare for a recession?
Keep Ca$H and think FAST!
San Francisco’s median sold price for condo/loft/TIC’s hit a new high in July, at $1,250,000. Single family homes were slightly off their June all-time high of $1,700,000 but still posted the second highest price month ever at $1,660,000. Interest rates are LOW! They have dropped .5% in the last 6 months and are now less than 4%.
But with a high and hot market, will inevitably come a downfall.
The news is blasting with articles on signs of a recession coming in the next year. Reasons behind the big spook are the current trade policies particularly with China, geopolitical crisis and stock market correction.
So when can we expect a recession? Zillow Research conducted a survey that asked real estate experts, economists and strategists to predict the timing of the next recession. Over 100 experts weighed in and predicted it will likely hit us in Q3 of 2020 with the possibility of it spilling into 2021. It is important to keep information like this in mind in order to plan when the best time may be to buy or sell.
Buying when prices drop seems like the right idea, but we cannot predict what will actually happen. The economy will be low causing some people to fear further drops. They might end up riding it out until prices come back up again. On the flip side, many people may be scrambling to buy so the market will be highly competitive and you may not be able to get exactly what you are looking for. Why wait? Interest rates are LOW NOW! Let’s get you into a home now so you can catch the full upswing when it recovers.
The market is good right now. You may be able to sell your home at its highest price possible over the next five years. If the recession is coming in 2020, why not sell now before prices fall…
How do you navigate through the volatile stock market? According to an article by Market Watch, investors are moving away from equities, and instead investing in real estate. The idea is to keep cash on hand.
If you want to talk more about the current market conditions and are wondering when is the best time to buy or sell, contact us! It is our job to educate our clients with real time market information.
Contact us today at 415.728.2596 or firstname.lastname@example.org.