Do Home Prices Go Up In A Recession?
Do Home Prices Go Up In a Recession?
What happens to home prices during a recession?
The housing market is a hot topic these days, and news headlines leave a lot of people wondering will the market crash? What happens to home prices during a recession? Are houses cheaper during a recession? one thing I want to share with you to put you at ease is history proves a recession does not equal a housing crisis.
One reason why home prices are so inflated right now is we have had more buyers looking for homes with very low housing inventory. We have had six recessions in our country since the 1980s and home prices went up during recessions. The only time prices did not appreciate was in the 1990s, which had minimal impact. The second time was during the housing crash in 2008 which occurred because of extremely lenient lending standards which have since tightened up. As a realtor who survived the housing crash, I remember being at the closing table as a listing agent wondering how some of these people were able to afford a $400,000 house when their jobs just didn’t seem to justify the price.
During those recessions, home values rose. History proves that a recession does not mean that home prices will decrease.
If you need an expert to guide you in our area with regards to what is happening in the housing market, let’s connect so you can feel confident about whether you should buy a home during a recession or whether or not your should sell your home during a recession.
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