Aug. 17, 2020
Will We Have an Economic Recovery in the Third Quarter 2020?
The news these days seems to have a mix of highs and lows. We may hear that an economic recovery is starting, but we’ve also seen some of the worst economic data in the history of our country. The challenge today is to understand exactly what’s going on and what it means relative to the road ahead. We’ve talked before about what experts expect in the second half of this year, and today that progress largely hinges upon the continued course of the virus.
A recent Wall Street Journal survey of economists noted, “A strong economic recovery depends on effective and sustained containment of Covid-19.” Given the uncertainty around the virus, we can also see what economists are forecasting for GDP in the third quarter of this year (see graph below):Overwhelmingly, economists are projecting GDP growth in the third quarter of 2020, with 5 of the 9 experts indicating over 20% growth.
Lisa Shalett, Chief Investment Officer for Morgan Stanley puts it this way:
“Indeed, the ‘worst ever’ GDP reading could be followed by the ‘best ever’ growth in the third quarter.”
As we look forward, we can expect consumer spending to improve as well. According to Opportunity Insights, as of August 1, consumer spending was down just 7.8% as compared to January 1 of this year.
An economic recovery is beginning to happen throughout the country due to pent up demand. While there are still questions that need to be answered about the road ahead, we can expect to see improvement this quarter. And history shows that home prices will continue to rise over time. There's a good chance that the longer you wait to buy, the more your next home is going to cost.
The Lewisville-Clemmons Real Estate Market
Even during this pandemic, the local Lewisville-Clemmons real estate market has remained strong. Many listings are selling within days, with multiple offers, for over list price. Buyers are finding if they really want a home, they must bid $10,000 to $15,000 over the listing price. Additionally, the continued low inventory levels are causing home prices to creep up at an astounding pace of 7%-10% annually especially in the lower price ranges under $300,000. As you can see, it's definitely a Seller's Market at this time.
If you are wondering if you should move now or stay put for the next few years, give us a call/text for a ten minute initial consultation. We can meet in person or virtually if you prefer. We can help you save hundreds of hours of your time whether you're buying or selling with a quick, no obligation, consultation. Call/text us today at 336.462.9544. We're here to help!