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On Monday, the National Bureau of Economic Research<\/em> (NBER) announced<\/a> that the U.S. economy is officially in a recession. This did not come as a surprise to many, as the Bureau<\/em> defines a recession this way:<\/p>\n\n\n\n \u201cA recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.\u201d<\/em><\/p><\/blockquote>\n\n\n\n Everyone realizes that the pandemic shut down the country earlier this year, causing a \u201csignificant decline in economic activity.\u201d<\/p>\n\n\n\n Though not surprising, headlines announcing the country is in a recession will cause consumers to remember the devastating impact the last recession had on the housing market just over a decade ago.<\/p>\n\n\n\n The real estate market, however, is in a totally different position than it was then. As Mark Fleming, Chief Economist<\/em> at First American<\/em>, explained<\/a>:<\/p>\n\n\n\n \u201cMany still bear scars from the Great Recession and may expect the housing market to follow a similar trajectory in response to the coronavirus outbreak. But, there are distinct differences that indicate the housing market may follow a much different path. While housing led the recession in 2008-2009, this time it may be poised to bring us out of it.\u201d<\/em><\/p><\/blockquote>\n\n\n\n Four major differences in today\u2019s real estate market are:<\/p>\n\n\n\n We must also realize that a recession does not mean a housing crash will follow. In three of the four previous recessions prior to 2008, home values increased<\/a>. In the other one, home prices depreciated by only 1.9%.<\/p>\n\n\n\n Yes, we are now officially in a recession. However, unlike 2008, this time the housing industry is in much better shape to weather the storm.<\/p>\n","protected":false},"excerpt":{"rendered":" On Monday, the National Bureau of Economic Research (NBER) announced that the U.S. economy is officially in a recession. This did not come as a surprise to many, as the Bureau defines a recession this way: \u201cA recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and … <\/p>\nBottom Line<\/strong><\/h3>\n\n\n\n