Why a country-wide recession doesn’t mean that home prices will drop.

We keep hearing in the news about how our country is heading into a recession. Is that true, and if so, how bad will it be? What would a recession do to the housing market? I want to dive into the last question today.

We’ve been through six recessions in the last four decades. During four of those recessions, home prices actually increased. There were only two instances where home prices decreased. The first one was in the early ‘90s, and home values only dropped by about 1.9%. The second time housing prices fell was during the Great Recession in the mid to late 2000s. We had a real estate crash at the same time, and prices fell by nearly 20%.

“Just because we go into a recession doesn’t mean that we’ll be in a housing crisis.”

We have to remember that our current housing market is not in a bubble like we were back then. The fundamentals of today’s market are vastly different from the one in 2007. Just because we go into a recession doesn’t mean that we’ll be in a housing crisis. 

Three are a lot of factors that go into recessions and how the housing market reacts to them. I would love to have a conversation about your specific situation, so feel free to reach out. Just call my team and me at (269) 350-5514. We would love to hear from you.