We're running smack dab into a recession.
And I was living in denial about it...all up until about 2 weeks ago when I started digging through charts on the housing market.
Now, I did know that our real estate market here in California started its "cool down" this past spring. But I thought (or hoped, rather) that it was just a "bump" in the road that we'd get past.
Then the summer came. The cool down continued. It went from a lukewarm "cool" to just damn cool. No change. Just getting colder and colder as the months rolled on.
Then fall rolled around. And I got THE report.
Yes. The report.
This would be the report on the San Francisco real estate market.
Now, let's back up for a brief second here. California is the 6th largest economy in the world. We are a trend leader on the economy for most areas of the country. So, I consider myself lucky to be here in this state because it allows me to see the trends long before everyone else in the country gets to see them.
Back in late 2006, I felt the "winds of change" in the real estate market that didn't become "concrete" until the beginning of 2007. This would be many months (and almost a solid 2 years) before everyone knew we were in sh** deep in a recession.
Yes, I got the whiff of the recession BEFORE it happened.
Fast forward to August/September 2016 with the "report" I saw on the San Francisco housing market AFTER I've already been feeling this real estate "cool down" in southern California for about 6 months now.
The report isn't good. It's substantiating everything I suspected.
We're going into a recession, folks.
Now, the good news is that it won't be a replay of 2008 UNLESS something really catastrophic happens (either a war, major terrorist attack, or something else to rattle consumer stability). We're already a fragile economy. We never really came back super solid since 2008 for a variety of reasons which I won't get into now because it's not so important as the knowledge of knowing what's about to happen.
I look at this recession as a "mild" one (unless something "happens" as explained above). It'll last 10 months to a year. Front-to-back, across the nation, it will probably "appear" to last much longer, upwards of 24 to 30 months. The reason for this is that "drag," especially for people like me who DO BUSINESS in California (the trend leading state) and DO INVESTING on the other side of the map (where recessions are felt and played out last). So, recessions for me generally last MUCH LONGER than most anyone else do to doing business in so many different metropolitan areas that are each hit differently and at different times when a recession comes in.
Right now we're in a "hold pattern." So, the majority of the country won't see the apparent recession until after November 8th (election day). Everyone is sitting on pins and needles right now until that date so there isn't much focus anywhere else. Once we pass the election (and we no longer have to hear the daily mud-slinging about either candidate), we'll come out of the fog and realize that we're going down...
So, what do you do?
First of all, don't panic. Panicking is for the common man who wants to stay broke. (There are people with money with the "broke" mentality also INCLUDING current property owners.)
Now is the time to STEP BACK, re-evaluate the plan, CREATE a new plan, and go in like gang-busters once the economy starts to become unglued at the seams.
I love recessions. This means DEALS ON REAL ESTATE. I haven't been able to get good deals on stuff for at least 3 years now and it's been frustrating the hell out of me. So now, coming right around the corner, I'll be the FIRST ONE IN LINE to start getting DISCOUNTS on properties left and right.
I STRONGLY suggest that you join me in this because this will be your last real shot until we recess again which won't be until about 2023/2024-ish. And that's a LONG TIME to wait to even start building your real estate empire. Don't you think?
At the top of the page I showed you our current housing market chart and my prediction that the market MUST to down...or "correct" itself. That's just basic economics, folks. This is NORMAL market movement.
So, instead of panicking and worrying about what's coming up, prepare yourself to start building your wealth empire INSTEAD.
CLICK HERE to see my charts and what I'm doing to help you profit wildly from this upcoming 2017/2018 recession!
See you at the top!
Your mentor,
Monica Main
