Speaker 1: Hey, I wanted to jump in here and just give a quick market update. Just a quick five minute or less news that you could use. And I thought I would share my screen and just go over some of the things with you that I think have become really, really important for us to know. Let me make sure I’m sharing the correct desktop here. And what I want to do is just go over some great information that I just got. And this is part of just keeping current matters, right? And these are some great economists and folks that I follow that help army with great information to bring to you all to the public. So I want to kind of just dispel some of the things that had been going on and really help you understand what’s going on.
So are we in a recession? Yes, but I want you to know that it does not equal a housing crisis. Okay. So just hang on and bear with me for this. So the CEO of Mynd Property Management, Doug Brien, he said that, “With the exception of the two recessions, the Great Recession in 2007-2009 and the Gulf War recession that we went through in 1990-1991, no other recession have impacted the U.S housing market according to Freddie Mac Price Index.” And that data has been collected from 1975 all the way through 2018. Here’s a great visual that I think you can see really what happened in ’91 and 2008 that those two did have a direct impact with the housing market. But in the other instances you can see the home prices, they actually went up. So this is what has happened in the last five recessions, not including the one that we are currently in.
Oops, I went back. Okay. Now out of all of the homes in America, I want you to see that Americans are sitting on a tremendous amount of equity. Do you know that 37% of the households right now are owned free and clear? Okay? And of those 27, almost 27, 26.7% of the mortgaged homes have more than, or at least 50% equity, I should say, have at least 50% equity. And if you look at all of the homes that’s including the ones that are owned free and clear, and there are more than 50%, 53.8% of homes that have at least 50% equity. That’s amazing, right? So here’s another chief economist Robert Dietz. He said that the housing sector enters this recession actually under built rather than overbuilt. And that means that as the economy rebounds, which it will at some stage, housing is actually set to help lead the way out.
So we as a real estate industry are going to help us get out of this recession. Another chief economist Ali Wolf over at Meyers research, she said, “This is the greatest recession for leisure, hospitality, trade and transportation in that this recession will feel as bad as the Great Recession did to housing.” This one is not related to the housing. Last time housing led the recession, this time it’s poised to bring us out. Now we’ve got two economists saying the same thing. Then Bernanke said that, “My results do suggest that, in the absence of panic, the declines in employment, consumption and output in the early stages of the Great Recession would have been significantly less severe.”
I love this message from Arthur Guinness. So when Arthur Guinness decided in 1759 that he was going to open a brewery, he signed a lease on a four acre site in downtown Dublin. Do you know what the terms were? 45 pounds a year for 9,000 years. What does that even mean? 9,000 years? Clearly he knows he’s not going anywhere and that’s what I want you to know that I’m not going anywhere either. And Guinness actually put out this most wonderful YouTube, let me see if I can’t pull this little video that shows you… Oops, wrong screen here. Let me bring this up. It gives you their message that they’re not going anywhere. They’re here for a while, for the long run.
Speaker 2: Over 260 years we’ve been through it.
Speaker 1: Sorry. Let me see if I can get it more centered for you. Okay. Bring it back up. Here we go. Okay.
Speaker 2: We’re confident, if we all support each other, we will come out of this closer than ever. Now we’re going to say something we never thought we’d ever say, don’t toast with your friends. At least not up close and personal. But, remember a toast isn’t just about raising your glass, it’s about raising each other. And even though we can’t toast physically, we can toast virtue. Share a pint with your friend, try new kinds of happiness. This is not only a time to be saved, but a time to be good to each other [inaudible 00:05:16] to your neighbors, see how they’re doing. Call your grandparents, let them hear your voice. And don’t worry when the time is right, we’ll meet you. We will help our bartenders get back on their feet and we will all toast again. As for us, we signed a 9,000 year lease on our brewery, so we are not going anywhere.
Speaker 1: See that? They are doubling their commitment towards the U.S. Isn’t that amazing?
Okay, so that’s, let me stop my share, there. That’s basically the message that I wanted to let you know. I got into the real estate industry in 2007 right when the great recession was hitting, so I had to learn, I had to pivot. I had to learn the way completely different than a lot of the other agents that had been literally putting a sign out and were experiencing the boom. I’m not going anywhere, I’m here to help you. I’m here to help you sort through all of the different things that we hear, the headlines that may leave you confused. Please reach out to me and let me know what I can do to help clarify to help bring a little more education to the topic and just bring some ease so you understand that the housing market is not part of this recession. It is driven by a pandemic.
It is health related which is then leading to some of the economic, what we’re feeling from the job loss. There are people that are going through job loss, that are going through hours cut and things like that as well and it is impacting our economy. Yes, we do have a recession but it is not as a result of the housing market. So we are actually going to help. Real estate is considered essential here in Georgia at least. So please reach out to me and let me know how I can help you. And if you’re thinking about buying or selling, we have all kinds of virtual ways to make that happen, to keep you safe. So please don’t feel scared and alone. Reach out and ask, and I would love to help answer any questions. Thanks so much for watching and I hope that you found this valuable.