Why the upcoming recession likely won’t affect home values too much.

There’s a lot of talk about the upcoming recession in the news, but there’s one fact about recessions that homeowners need to remember: A recession does not equal a housing crisis. Today I want to explain why that is.

Home prices don’t fall every time there’s a recession. If you look at the historical data at 0:56 in the video, you can see that we’ve had six recessions over the last four decades. Home prices appreciated during four of these recessions, and they fell during only two. There is historical proof that home values don’t always fall when the economy slows down. 

“If a recession is coming, it doesn’t mean homes will lose value.”

The first time home values decreased during a recession was during the 1990s, and they dropped by less than 2%. The second time home values dropped was during the housing crisis in 2008, when prices fell by almost 20%. 

Most people vividly remember this crisis and think that we’ll see a repeat of it if we go into a recession. However, that’s just not the case. This housing market is not a bubble that’s about to burst. The fundamentals of today’s market are different than they were in 2008, so we shouldn’t assume that we’ll see a similar result. 

The bottom line is that if a recession is coming, it doesn’t mean homes will lose value. If you have questions about how a changing economy affects your home value, call or email us today for a free consultation. There won’t be any gimmicks or high-pressure sales tactics, just an honest conversation about your home value. Remember, it's not the market. It's the marketing that makes the difference!