This is a somewhat misleading headline, since I am neither a professional economist, nor a seer. The point I want to make, however, is that there is much more activity than there was after the abrupt economic debacle of 1987, or during the Great Recession of the late "Aughts". In those two prior times, all interest in viewing real estate, or in buying or renting it, went on hold as soon as the stock market collapsed. It took many years, in each case, to revive demand, or begin to create supply.
Right now, we are seeing strong activity in the industrial market, as well as demand in investment real estate continuing along. Retail and traditional office buildings have clearly been harder hit, so it will take longer to see what happens in those sectors. The fact that sales and leases are occurring, however, shows that this recovery won't be as delayed as the other two. It may not mean that prices stay up, although we haven't seen that problem yet.
One big factor is that some parts of the national economy, led by ecommerce, and followed closely by PPE manufacturers, have every reason to be expanding. The pandemic part of this crisis, leaving the economic issues aside, have created opportunities for new businesses and expanded services. Some of the current trends seem likely to persist, even if the country completely opens up by the end of the summer. While things could certainly shift for a number of reasons, nimble entrepreneurs and corporate leaders are moving quickly to fill demand.
The intervention of the government in the early stages may also mean that banks are more inclined to lend. The relief provided so far gives financing firms more assurance that they will eventually get paid. That wasn't true in the last recession, and it was recent enough that we seem to be remembering those lessons.
Let's hope that I'm right, and that we see strong sales and leasing as restrictions lift. Given our large role in the overall economy, that would be good news for everyone.
