The economy has been a hot topic for the past couple weeks and likely will be for the next foreseeable future. The current pandemic has caused quite a bit of discussion in regard to the type of recovery we will see once our country is fully reopened and operating at normal capacity. For those of us who sell Lake Tahoe real estate, our clients have been asking a lot of questions about this. After all, the economic health determines whether a lot of people can list or buy homes for sale in Lake Tahoe. Currently, a lot of sellers and buyers who had plans to list or purchase Lake Tahoe real estate this year have put their plans on hold for the moment. So how long will it take to recover? Let’s look at the 3 types of economic recoveries.
- V-shaped recovery:This recovery is known as an economic period in which the economy experiences a sharp decline followed by a trough (also known as a clear bottom) which does not last long, followed by a strong recovery.
- U-shaped recovery:This is when the decline is more gradual and less severe. The recovery that follows starts off moderately and then picks up speed and can last 12-24 months.
- L-shaped recovery:This is the least desirable scenario as it has a steep economic decline followed by no growth for a long period, taking years to get back to where it was before.
Generally, after pandemics, the usual recovery is a V-Shaped recovery. This is what happened after SARS, H3N2, H2N2 and the Spanish Flu. Which is good news for those chomping at the bit to get back into the Lake Tahoe real estate game. However, no one can say for sure. The nation’s top financial firms are projecting for a V Shaped Recovery, with a strong comeback happening in the 3rd and 4th quarter. However, there are a few experts that say to expect a U shaped recovery as there are concerns American consumers may not rush back in to the market place. It really all depends on when we can return back to a normal life which is hard to gauge with each state not giving exact dates. If you are interested in listing or buying homes for sale in Lake Tahoe and want more information on how the current state of affairs is impacting our local market, feel free to give me a call. I would be happy to give more details.