Connect with us

Subscription confirmation

Published

on

[wysija_page]
Continue Reading

Real Estate

Are you waiting for house prices to drop during the next recession? Why you could have a very a long wait

Published

on

By

The last recession was caused in part by a downturn in the housing market

The housing market could provide a cushion to the national economy in the next recession, economists say.

It’s unclear when the next recession will come. But a recent report argues that when it does the U.S. housing market is unlikely to adversely affected in any major way.

Researchers at First American Financial Services FAF, -1.28%, a title insurance company, examined how the country’s housing market has fared historically during recessionary periods. Based on what’s happened in past recessions, the report argues that the next recession is unlikely to prompt a major downturn in housing.

“While the housing crisis is still fresh on the minds of many, and was the catalyst of the Great Recession, the U.S. housing market has weathered all other recessions since 1980,” wrote Odeta Kushi, deputy chief economist at First American and the report’s author. “In fact, the housing market may actually aid the economy in recovering from the next recession — a role it has traditionally played in previous economic recoveries.”

Using its own data along with information from Freddie Mac FMCC, -0.47%  and the National Association of Realtors, the report maps out how the housing market has traditionally fared in economic downturns. In most other cases, home price appreciation continued at an even pace, and existing-home sales growth only edged downward slightly, Kushi wrote.

On average, U.S. house prices fell approximately 33% during the Great Recession.

So what made the Great Recession different? The housing boom that preceded the last recession was largely driven by an explosion in both home-building activity and mortgage credit. Home buyers were able to get mortgages with no documentation of their income and no down payment, and many loans had introductory 0% interest periods that made them cheap to start but more expensive as time wore on.

These homeowners were over-leveraged. “The housing crisis in the Great Recession was fueled heavily by the fact that job loss was paired with a significant share of homeowners who didn’t have much equity in their homes,” Kushi wrote.

And because developers constructed so many homes, their home values quickly sank when the bubble burst, exacerbating the situation further.

The growth in home prices seen during the current economic expansion has not been fueled by increased access to mortgage credit. Rather, it’s a simple reflection of supply and demand: Many Americans want to become homeowners, but the supply of homes available for sale is very low, pushing prices upward.

While this has made the prospect of buying a home unaffordable for millions of Americans, it has also meant that those who are homeowners have seen their home equity grow substantially in recent years. That decreases the likelihood that they would be underwater on their loan if home prices were to dip in a recession.

“Were we to have a recession, I’d argue housing would provide a cushion because the shortage of supply at the entry-level suggests builders could actually continue to build,” Doug Duncan, Fannie Mae’s chief economist FNMA, +0.07%told MarketWatch in December.

There still are red flags that homeowners should be on the lookout for when it comes to how a potential recession might affect the housing market. For starters, many Americans have taken out cash-out refinance mortgages on their homes as their home values have grown. That’s whittled away the equity these people have in their property, leaving them more vulnerable to owing more than their home was worth in the potential event the home prices drop.

Another issue: Many Americans who fell behind on loan payments and modified their mortgages in the wake of the recession to avoid foreclosure have since redefaulted. Were these people to lose their jobs in a recession, they could easily fall into foreclosure. Research has shown that foreclosures exacerbate economic downturns — and they can have a ripple effect through a local market, causing other homes to drop in value.

And at the local level, certain local housing markets could prove more resilient in the event of recession, depending on the strength of the local economy relative to what’s going on at a national level.

Continue Reading

Markets

Get $50k In Life Insurance Regardless Of Age

Published

on

By

None of us like to think about the worst happening. That’s why it’s essential to have life insurance. An excellent policy could easily help cover mortgage and childcare costs as well as help secure a good education for your children or grandchildren and safeguard your loved ones from inheriting your debts. 

Unfortunately, a shocking number of Americans do not have life insurance, which could leave their family financially devastated if the worst should happen. 

The reason, according to recent studies, is most people think they have to pay three times more than they need to. Others think they are too old to qualify for life insurance. The reality is, you can find very inexpensive policies through the National Family Program. New policies have even made it easier for seniors to obtain policies which may cover burial costs, pay off bills or leave money to loved ones.

Life Insurance Doesn’t Have To Cost A Lot National Family provides an online service that enables users to get free life insurance quotes, and many customers are shocked at the results they find. Most people can’t believe that the available rates are real, but the truth is, life insurance rates are at a 20-year low. And, thanks to new program policies, it’s now easier to lock in up to $50,000 of life insurance for $15/Month without a medical exam

Because of this, smart consumers now use online tools like National Family to receive fast and free life insurance quotes. The system works so well that you will be able to compare different options in as little as a few minutes. It’s no wonder why so many people are saving money since you are now able to use this simple tool rather than spending weeks trying to contact and compare options with various life insurance providers. 

Here’s How You Do It:● Step 1: Select your age and see how much coverage you can get.

● Step 2: Once you go through a few questions, you will have the opportunity to compare the best quotes in your area.

Continue Reading

Advertorial

Buy This Tiny “Tesla Killer” Now

Published

on

By

I’m here 3,000 miles from home in Long Beach, California.

This industrial suburb looks nothing like Silicon Valley, but recently it’s become the epicenter of explosive new technology.

One that’s taking the $2.5 trillion electric vehicle market by storm.

It charges in just minutes — not hours. It’s 100% emission-free, costs next to nothing, and involves no fossil fuels. The only thing it emits is pure, clean water.

This is why experts call this technology the “Tesla Killer.”

I came here to try it for myself and see if all these claims were true.

And incredibly enough, the “Tesla Killer” worked better than I imagined.

The car took moments to fill and drove like a dream along the California coast, lasting hundreds of miles.

I’m now certain that no Tesla could possibly compete with it.

That’s why Bloomberg projects it to “skyrocket 1,000 times over.” And best of all…

The tiny, little-known stock behind the “Tesla Killer” is traded for just a few bucks.

Don’t wait another moment.

Now you can lock in its shares for a few dollars, instead of $300 like Tesla.

Click here for the full story.

Continue Reading
ADVERTISEMENT
Advertisement

Facebook

Trending

Copyright © 2017-2020 ZoMa LLC.