Here’s What a Recession Could Mean for the Housing Market

Here’s What a Recession Could Mean for the Housing Market

A Recession Doesn’t Mean Home Prices Will Drop

Many assume a recession automatically leads to falling home prices, but history tells a different story. The 2008 housing crash was an outlier, not the norm. In fact, data from CoreLogic shows that in four of the last six recessions, home prices actually increased.

Would you like to dive deeper into what this could mean for our local market? Let’s connect and discuss.

Mortgage Rates Typically Decline During Recessions

While home prices generally stay on their current path, mortgage rates tend to drop when the economy slows. Historical data from the past six recessions shows a consistent trend—each time, mortgage rates fell.

If you’re thinking about buying or selling, understanding these trends can help you make informed decisions. Let’s connect to discuss what this means for you in today’s market.

A recession could result in lower mortgage rates, according to past trends, making homes more affordable for buyers. However, rates are unlikely to return to 3%, with any decreases expected to be more moderate.

Bottom Line

The possibility of a recession remains uncertain, but the chances have increased. However, historical data provides insight into how the housing market typically responds.  

What are your biggest questions or concerns about buying or selling a home in this situation?