Unless you’ve been hiding under a rock, you’ve noticed that we are experiencing record high inflation rates. A trip to the gas station just “ain’t what it used to be.”
With inflation comes the whisperings of a recession in the future as the Feds take further action to slow down the economy. If the nation were to experience a recession, how might it affect the housing market?
THE HOUSING MARKET DURING A RECESSION
Historically, how has a recession impacted the housing market? Traditionally, housing performs better in a recession compared to other sectors of the economy. Yes, there was a significant dip in housing prices during the 2008 recession, but it’s important to remember that the collapse of the housing market was the impetus of that recession. Today, lenders are much stricter in their lending policies.
During that time, inventory was high and there was simply not enough demand to meet it. In 2022, we find ourselves in the middle of a housing shortage. This issue of supply and demand is likely to keep values appreciating, albeit at a less frantic pace.
WHAT’S MY NEXT BEST ‘MOVE’?
If you’ve put your home purchase on the backburner because of a fear of a recession or a potential drop in homes prices, history suggests that you may actually lose out on some of the equity that you could have gained during this period.
There’s a lot to consider. I’d love to help you with your real estate questions today. Give me a call! 925-366-5320