A recent press release from Fannie Mae, the government-sponsored mortgage lender, predicts that the US economy is likely to enter a recession in the second half of 2023. However, the press release also notes that the housing market is expected to remain strong, even during a recession.
There are a few reasons why Fannie Mae believes the housing market will remain strong. First, the demand for housing is still very high. There are more people looking to buy homes than there are homes available for sale. This is due to a number of factors, including the aging population, the increasing number of millennials who are ready to buy homes, and the low interest rates that have made it more affordable to buy a home.
Second, the supply of housing is not expected to increase significantly in the near future. This is because the construction of new homes has been slow in recent years, and it takes time to build new homes. As a result, the housing market is expected to remain tight, which will support home prices.
Of course, there are some risks to the housing market. If the economy enters a recession, it could lead to job losses and a decline in incomes. This could make it more difficult for some people to afford a mortgage. However, Fannie Mae believes that the housing market is resilient and that it will be able to withstand a recession.
Overall, the Fannie Mae press release suggests that real estate agents should be prepared for a recession, but they should not expect the housing market to collapse. The housing market is expected to remain strong, even during a recession.
Here are some tips for real estate agents who are preparing for a recession:
- Stay up-to-date on the latest economic news. This will help you to understand the risks and opportunities in the market.
- Be prepared to adjust your marketing strategies. You may need to focus more on online marketing or direct mail during a recession.
- Be patient. It may take longer to sell a home during a recession.
- Be flexible. Be willing to negotiate on price or terms.
By following these tips, real estate agents can position themselves for success, even during a recession.