03/09/2020
RECESSION LOOMING? I am afraid so.
The world is at a standstill with the coronavirus, and many industries are being affected by it:
* U.S. stock market down 15% in past few weeks
* Airlines cut flight schedules due to lack of demand
* Large gatherings are postponed or canceled altogether
* Manufacturing slowed down due to factory shutdowns
With all these signs, we likely will see a short-term recession in the 2nd and 3rd quarter of 2020, and hopefully will see a recovery in the 4th quarter. While recession is never good, this time it may be good for the U.S., as foreign investors see the U.S. as a safe haven during this global pandemic.
The one area that seems to remain safe is real estate. Demand for real estate within many parts of the U.S. has been strong in 1st quarter of 2020. Now, with the influx of foreign demand, it will only fuel the real estate market.
What should you do? If you are a homeowner, take advantage of this incredible interest rate environment to lower your payments; consolidate your non-real estate debts; and, possibly take out some cash for savings. If you are not yet a homeowner, it's time to seriously look at becoming one. Rental market rates have steadily increased the past couple of years, it may now be more affordable to own a home than to rent one.
