financial predictions calling for rapid V type recovery

As our lives, our businesses, and Arizona change day by day, we’re all left wondering how long this will last. How long will we feel the effects of the corona-virus? How deep will the impact go? The human toll may forever change families, but the experts expect the Arizona economic impact will rebound with a cycle of downturn followed by economic expansion like we’ve seen play out in the U.S. economy many times over. 

Take a look at what experts and current research indicate about the economic impact we may see as a result of the coronavirus. It starts with a forecast of U.S. Gross Domestic Product (GDP).

According to Investopedia:

“Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health.”

When looking at GDP (the measure of our country’s economic health), a survey of three leading financial institutions shows a projected sharp decline followed by a steep rebound in the second half of this year. 

A recent study from John Burns Consulting also notes that past pandemics have also created V-Shaped Economic Recoveries like the ones noted above, and they had minimal impact on housing prices. This certainly gives hope and optimism for what is to come as the crisis passes.

With this historical analysis in mind, many Arizona business owners are also optimistic for a bright economic return. A recent Pricewaterhouse Coopers survey shows this confidence, noting 66% of surveyed business owners feel their companies will return to normal business rhythms within a month of the pandemic passing, and 90% feel they should be back to normal operation 1 to 3 months after. 

PricewaterhouseCoopers Survey of 50 leaders about recovery of business after covid-19

From expert financial institutions to business leaders across the country and Arizona, we can clearly see that the anticipation of a quick return to normal once the current crisis subsides is not too far away. In essence, this won’t last forever, and we will get back to growth-mode. We’ve got this.

Bottom Line

This market can potentially turn into a buyers market, and rebound back into a sellers market by the end of the year/next year.  Homes may go on sale for a few months.  Buy well within your budget, please don't over do it.