The national economy has been in decent shape for several years now, and millions of Americans, including many in California, have benefited greatly. Thousands of new jobs open every month, the stock market is in good shape and, perhaps most importantly for homeowners everywhere, the real estate market is holding strong. However, there are always naysayers out there, and some are starting to throw around the dreaded “R”-word: Recession.
There is no doubt that the health of the real estate market is inextricably tied to the overall health of the national economy. We all learned that lesson, some of us the hard way, during the so-called Great Recession, in which the burst of a housing market bubble set off a global economic crisis. While the impact of that market dip was felt more keenly in some locations over others, California was not immune to the impact. With whispers of an economic slowdown potentially approaching, a recent article looked at a simple question: Is it time to sell, buy or stay put?
As with almost all questions when it comes to real estate law, the answer is “it depends.” The nature of any given real estate transaction can be complicated. Residential deals are quite a bit different from commercial deals, for example. And local areas can be quite a bit different from one another. The Los Angeles real estate market, for instance, will have significant differences from the Sacramento market.
But, the potential of an oncoming economic recession may have buyers and sellers alike somewhat “spooked,” as the recent news article mentioned. Anyone who has concerns involving real estate law in California may need to explore their legal options and start sorting out the best path forward for any given scenario.