Pros, Cons, and Expert Advice

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Now you know more about both the pros and cons of buying a house in a recession, it’s time to find out what the experts say about the current economic market and buying a home in it.

National Bureau of Economic Research Outlook

First of all, on the matter of whether we are actually in a recession right now or can expect one soon, the National Bureau of Economic Research (NBER) is a good place to begin. Currently, NBER has not stated we are in a recession, although they will not do so until well into a significant economic downturn.

However, by analyzing some of the same factors as the NBER, including data on Unemployment, Non-farm jobs data, Industrial price index (IPI), Retail sales, Real personal income less transfers (PILT), and GDP we can get a good idea of ​​whether we are in a recession or not.

Indeed, while the GDP had a downturn during Q1 and Q2 of 2022, by the third quarter it has recovered. Similarly, unemployment rates dropped back to pre-pandemic levels as of November 2022 (3.7%). It’s also true that retail sales were down 0.6% month-over-month, however, they were up 6.5% year-over-year. The Industrial Production Index has also stayed consistent since April 2022 with no nosedive.

All of these factors suggest that we are not currently in a recession. Yet, inflation remains high and the pandemic and geopolitical conflict are contributing to an uneasy economic atmosphere in both the US and globally.

This unease is leading some to label the current economic situation as a: “white collar recession,” “Patagonia vest recession,” and “Richcession,” suggesting that the people it is hitting most are the middle classes.

Expert Advice

If you are considering buying a house during the current economic climate, the following experts provide some skilled advice that can help you make your decision:

Dawn Allcot, Yahoo Finance

Dawn Allcot Yahoo Finance states that if you do decide to buy a home during a recession then there are some specific…

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