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Why There Won’t Be a Recession That Tanks the Housing Market

In recent years, there’s been a lot of talk about a looming recession, sparking concerns reminiscent of the 2008 housing crash. However, expert projections suggest otherwise, offering a more optimistic outlook for the housing market.

Jacob Channel, Senior Economist at LendingTree, points out the current strength of the economy, stating that despite occasional challenges, the fundamentals remain robust. A survey by the Wall Street Journal reflects this sentiment, with only 39% of economists predicting a recession in the next year, down from 61% a year ago.

One significant factor supporting this optimism is the unemployment rate, which remains relatively low compared to historical averages. Data from Macrotrends, the Bureau of Labor Statistics (BLS), and Trading Economics show that current unemployment rates are significantly lower than during the aftermath of the 2008 financial crisis.

Furthermore, economists’ projections for the unemployment rate over the next three years indicate a trend well below the long-term average. This suggests that while there may be job losses, they are unlikely to reach levels seen during previous economic downturns.

While any increase in unemployment is concerning, the projections do not foresee a surge large enough to trigger a wave of foreclosures that could destabilize the housing market. Overall, the consensus among experts is that a recession is unlikely in the near future, and the housing market is not at risk of crashing due to foreclosures.

In conclusion, the current economic outlook is positive, with most experts predicting stability in the housing market for the foreseeable future.

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