"Here we are! In Pismo Beach with all the clams we can eat."
This is what Bugs Bunny says when he thinks he's arrived in a paradise, only to be greeted by a strange new land, after realizing he made a wrong turn at Albuquerque.
Interestingly, in this hilarious episode of the 1957 Merrie Melodies Short, instead of landing on a beach, Bugs Bunny and his traveling companion Daffy Duck end up in a cave with treasures (and dangers) untold.
I think some of us, especially after reading the news, could be asking ourselves if the housing market made a wrong turn somewhere (maybe at Albuquerque), and we are headed towards danger. They might be wondering if 2023 will spell recession, and maybe even some kind of miniature housing bubble burst, reminiscent of what happened in 2008 (how could we forget?).
While experts are experts, and I am not one of them, here are a few important facts I remind myself of while reading the news:
Recessions are part and partial to the health of an economy (I did not say this, Forbes did). So, if recession is already on its way, the best thing to do is be prepared. Being prepared for me, however, might look different for you. As a person who consults with people daily regarding their home loan, credit health, and assets, I make it part of my business to also talk to them about how they can be ready.
It is better to be a homeowner than a renter all the time, but especially during a recession. Why? Well, because a renter may pay their rent, but if the landlord doesn't pay the mortgage, a renter could be left without a place to live pretty suddenly. It's not pretty, but it's the truth. Compartively, homeowners who experience hard times during a hurting economy that communicate with their servicers-- making payment arrangements or applying for government-sanctioned deferrments-- can weather an economic storm and emerge from it with a roof still over their heads. We saw this during the height of the COVID-19 pandemic.
Just like the Merrie Melodies short, a strange new land, while having its dangers, can also offer opportunity. If we look at history, recessions can produce some innovative solutions that would not have come about otherwise. Case and point: The 2008 recession produced companies like Uber, Venmo, and Airbnb.
Need more examples? Sliced bread, Scotch Tape, and the first car radio, all came out during the Great Depression. Kind of gives the phrase, "It's the greatest thing since sliced bread," a whole new meaning, doesn't it?
Speaking of the Great Depression, I want to leave you with a quote from one of its innovators. You might have heard this quote before, but whether you have or not is not the point. We all need reminders that it is not the circumstances (economic, or otherwise) around us that influence us most, but what lies within us. So, I'll leave you with this reminder at the beginning of 2023, because it's the same challenge I leave for myself. Henry Ford told us, "Whether you think you can or think you can't, you're right."
Whatever your goals are, whatever your concerns are, whatever your planned destination is for 2023, I wish you much joy and prosperity this year. And, whether your plans include buying a home right now or later, as always, it would be my pleasure to be of any kind of assistance in helping you on your journey.
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