Unless you have been completely avoiding the news, there is a good chance you have heard that some economists predict high inflation will plunge the country into a recession. Not every economist agrees, of course. Some foresee a more gradual slowdown of the economy rather than a recession. They think that growth will continue but at a slower pace.
Recently, Lawrence Yun, chief economist for the National Association of REALTORS®, added his two cents to the debate. He notes that despite the gross domestic product contracting over the past two quarters, positive economic indicators like a strong job market and government guidance supporting affordable housing may lessen any possible recession.
While the National Bureau of Economic Research has not declared a recession since the start of Covid, government agencies have been looking at ways to support the economy and ease financial woes. The Treasury Department is allowing state and local governments to put leftover emergency COVID-19 funding toward creating more affordable housing, which could lead to increased construction. On top of this, the commercial real estate sector is still booming.
While the latest numbers show that home sales have not slowed down in Tampa, they are slowing down in other parts of the country. Renewed focus on affordable housing may help provide needed support to real estate markets that are seeing fewer sales.
Regardless, an increase in housing inventory would be welcome in the Tampa area. I know plenty of people are still looking for their next home. If you are one of them, let’s talk about the key things you want in your next property.