Jerry Howard, NAHB CEO, has plenty of experience in the housing industry. Prior to joining NAHB, Jerry served as the Chief Lobbyist for the National Council of State Housing Agencies. For over a quarter of a century, Jerry has been analyzing the housing market.
In last month’s interview with Bloomberg, Jerry shared with viewers a less-than-sunny perspective. He explained, ‘It looks like we’re heading into a housing recession, and if that is indeed the case, it doesn’t bode well for the economy as a whole.’ A damning quote for sure, but it didn’t stop there. Howard continued, ‘We’re getting more and more pessimistic’.
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The sentiments shared echo what we’ve heard for a while. Elon Musk told us that a recession was ‘inevitable’ not too long ago. We’ve also been warned of an ‘everything recession’ by George Noble.
‘At the same time were seeing inflation on mortgage rates and interest, we’re seeing increases in construction costs that are throwing the market off.’ Howard provided a capstone to the topic by lamenting past economic patterns, ‘Historically, housing has led us into every recession since WWII, but, it’s also led us OUT of every recession since WWII. Right now with the supply shortage we have…costs of construction and costs of loans, I don’t know that we’d be able to lead us out of a recession. I think this is a potentially dangerous situation.’
The word recession can trigger some scary images, however, chaos breeds opportunity. When the market turns, even if several markets turn, there is an opportunity to go against the grain and turn your own profit. For tips, consider several companies that stand to gain some ground with interest rate hikes.
>> see the best mortgage lenders during a recession
If investing in stocks is scary, consider real estate, a popular alternative investment. Even if there is a housing recession looming, at the other end is the potential for profit. Consider this: During the last recession, spanning from roughly December 2007 to June 2009, the average home in Ann Arbor, Michigan, sold for about $211,000, according to mlive.com. Ann Arbor is one of the most diverse, affluent and best places to live in America, as explained by Niche. As of June 2022, the average home sale price in Ann Arbor was $439,000.
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