Strength of the Economy Is Surprising the Experts – But, Not the REAL Experts

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by Debe on February 4, 2020

in Charlotte Home Buyers,Charlotte Home Sellers,Charlotte Housing Market,Charlotte NC Economic News

Strength of the Economy Is Surprising the Experts – But, Not the REAL Experts

Frustration with our politically-charged media, convinced me last year that we really needed to hit this ‘R’ rumor, head-on! We had a challenge here in the Rain and had an incredible response from members, sharing their take on an impending recession.

 

chicken littles in 2019

 

The response from members who are actively working in the business, showed how they “Plan by Answering the Difficult Questions.” I have to say, we were just in time to share the ‘truth’ with our spheres. As you can see in the graphic below, we were combatting the so-called experts’ opinions that were strongly influencing the media and thus, the public. I still haven’t quite understood why a pseudo recession would be something to gleefully report at our own country’s expense but, that’s another topic for another day!

 

And, as the graphic shows, it seems that our message has been heard, loud & clear. We’re currently in the longest economic recovery in US history. It seems the experts have changed their minds!

 

Now, in an article earlier this month, the Wall Street Journal (WSJ) revealed only 14.3% of those economists now believe we’re in danger of a recession occurring this year (see graph below):

Surprise that we are not heading towards a recession

*The graphic above, the topic and the quotes below are all courtesy of KCM – Keeping Current Matters. We appreciate their diligence in doing the research for us.

The WSJ article strongly stated,

“The U.S. expansion, now in its 11th year, will continue through the 2020 presidential election with a healthy labor market backing it up, economists say.”

 

Hmm…who would have thought?! I’ll tell you who – real estate professionals who are in the trenches every day. We are a supply & demand business and because Charlotte is a very transient metropolitan, we have a very long way to go to get out of this incredibly strong sellers market. That, in and of itself, will take years to achieve. Not only is inventory low but, it is shrinking; pulling out of this will take longer than one might think – certainly well beyond the upcoming election!

 

Surprised experts

 Strength of the Economy Is Surprising the Experts – But, Not the REAL Experts!

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This optimism regarding the economy was repeated by others as well.

CNBC, quoting Goldman Sachs economists:

“Just months after almost everyone on Wall Street worried that a recession was just around the corner, Goldman Sachs said a downturn is unlikely over the next several years. In fact, the firm’s economists stopped just short of saying that the U.S. economy is recession-proof.”

 

Barron’s:

“When Barron’s gathers some of Wall Street’s best minds—as we do every January for our annual Roundtable—we expect some consensus, some disagreement…But the 10 veteran investors and economists who convened in New York on Jan. 6 at the Barron’s offices agree that there’s almost no chance of a recession this year.”

 

Washington Post:

“The U.S. economy is heading into 2020 at a pace of steady, sustained growth after a series of interest rate cuts and the apparent resolution of two trade-related threats mostly eliminated the risk of a recession.”

 

Robert A. Dye, Chief Economist at Comerica Bank:

“I expect that the U.S. economy will avoid a recession in 2020.”

 

Bottom Line

Expert opinions (as well as yours truly) predict that there will not be a recession this year. And, yes, that’s great news for you, whether you’re looking to buy or sell a home in Charlotte.

© Debe Maxwell | The Maxwell House Group | RE/MAX Executive | CharlotteBroker@icloud.com | Strength of the Economy Is Surprising the Experts  - But, Not the REAL Experts

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The data relating to Charlotte NC Real Estate on this Web site derive from the Carolina Multiple Listing Services IDX datashare program. © 2020 Carolina Multiple Listing Services, Inc. All information provided is deemed reliable but is not guaranteed and should be independently verified.

RE/MAX Executive
The Maxwell House Group
2901 Coltsgate Road Suite 100
Charlotte, NC 28211

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Office: (704) 491-3310
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