Do you think we're still in a recession?

Reblogger Stephanie/Bob The Ruiz/Miller Team
Real Estate Sales Representative with Keller Williams Cornerstone Realty

Alan May does a great job with this post on the whole question of the recession, is it over, are we back sliding?  We told him that since normally housing leads us out of recession and housing has held the economy back this time, that maybe with the current turn around in housing it will bring the economy along.  Let's all hope so!!

Original content by Alan May

Do you think we're still in a recession?  This is a question that was asked today's meeting.  The speaker asked the question, and got mixed answers.

It was a room full of Realtors, and he asked "A show of hands, how many of you think we're still in a recession?"... about half of the hands went up.  "How many think we're NOT in a recession?"... most of the other half... I guess some folks had no idea, or were nodding off.

Then he asked jokingly... "how many think we WERE out of the recession, but are sliding back in?"

More importantly he asked: "How many of your clients, your buyers, think we're still in a recession?"  Almost all of the hands went up.

He went on to define a recession...  a simple definition: 2 consecutive quarters, or more, of "negative" Gross Domestic Product. That's pretty straight-forward and easy to understand.  Let's check it out.

If you look at the chart. provided by the U.S. Bureau of Economic Analysis, you'll see that we are a full 11 quarters from the last "negative" GDP.  That's right, a full 11 quarters... almost three years away from the last defined recession.  And yet we still feel like we're in recession. 

And more importantly the public perceives that we're still in a recession, and it's impacting their purchasing decisions.

The truth is that home buying "affordability" is at a record high.  Interest rates are at the lowest point in history.  Not just historic lows... but the lowest mortgage interest rates in history.  Period.  This is a unique time in history, and yet we and our buyers still feel like we're in recession.

Do any of you have family members who lived through the depression?  Did it change their purchasing habits?  You bet it did.  They became incredibly frugal.  They saved things like "twist-ties", and used-aluminum-foil.   They were determined that they'd "never go hungry again"... and that spending methodology impacted their children's spending habits as well.

Well, we went through a recession almost as formidable as the great depression, and it has impacted home-buying habits, and it may take quite a while before they see their way out of it.  Even though the statistics tell us that we've emerged from the recession a long time ago.

This is information that needs to be disseminated... and the sooner the better.

-10

ALAN MAY, Realtor®
Specializing in Evanston Real Estate and North Shore Real Estate

Coldwell Banker Residential Real Estate, 2929 Central Street, Evanston, IL 60201
847.425.3779      Cell: 847.924.3313      Email: Almay@aol.com

Evanston Real Estate & North Shore Real Estate
Licensed in Illinois

    

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Rainmaker
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Charles Stallions
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.
Charles Stallions Real Estate Services

This is certainly worse than the 80's during Jimmy Carter years for sure. Then it was the working folks that were suffering now it is everyone. I see so many unemployed people it is unreal.

June 27, 2012 07:33 PM
Rainmaker
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Stephanie/Bob The Ruiz/Miller Team
The Ocala Dream Team
Keller Williams Cornerstone Realty

Hi Charles, agreed.  Worst since the great depression.

June 28, 2012 02:32 AM
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