What markets are recession proof?

Morgan Brennan for Forbes recently reported that despite the Standard and Poor's downgrade on the U.S. government's credit rating, a continually high unemployment rate and a low consumer confidence, some housing markets throughout the country show small signs of a real estate rebound. Markets that have experienced small gains in home prices include Bay City, Michigan.

The Great Lakes Bay area has experienced seven consecutive months of improving home prices despite a 9.9 percent unemployment rate. Renee Harvey, a real estate broker with Keller Williams Realty, told the news source that local lenders and real estate agents are selling more traditional properties and less distressed properties.

While some markets are recovering slowly, Greg Rand, real estate broker and author of Crash Boom, said people looking to buy or sell in the housing market should watch the local trends to better predict where the prices will rise and where they will fall. According to Rand, current trends people should be wary of right now include lifestyle and responsible government.

With consumer confidence so weak, Rand said the lifestyle trends of consumers will help predict the local or regional housing market, particularly its climate, leisure trends and cost of living. State and local governments can greatly affect the market in how they support entrepreneurs and what the local economic climate is like.  

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