This week’s announcement of a historically high 33.1% 3rd quarter US GDP reflected growth that had seemed impossible. In the middle of a pandemic. In the middle of a recession. In the middle of 12.5 million unemployed people.
What drove this phenomenal growth?
In large part the growth was driven by exceptionally robust sales activity in the housing market....in sharp contrast to prior recessions.
Why has housing been so strong?
Historically low interest rates.
Supply in many areas shrunk notably.
Banks have been mostly tougher with their lending standards, driving lending to only those who can afford to borrow and pay.
Most home buyers are wealthier and employed with higher paying jobs.
COVID allowed highly distracted and over-worked consumers to focus on their needs and wants in their homes. It also fueled the desire for second homes.
Now all we have to do is survive the next few weeks.....
Fasten your seatbelts and lots of deep breathing! With Halloween tomorrow, I don't imagine it will be any scarier than 2020 itself. Happy Flying!
