Homebuyers, Don’t Fret!

    Economists advise that a recession is on the horizon, BUT don’t let this sacre you! As mentioned in this article we referenced, “A recession does not equal a housing crisis”. If there were to be an economic decline, there are several other factors as to why home prices wouldn’t follow suit.

    • A recession does not equal a housing crisis
    • Due to the short fall of homes on the market, home prices will likely remain the same
    • You can refer to historical data that proves there isn’t a direct correlation between a recession and a housing crisis

    This week we wanted to touch on one of the biggest objections that we are getting from our buyers right now. Far too often do we hear, “I am waiting until the market crashes to buy”. 

    Many are quick to assume that since we are on the brink of a recession that the housing market will crash. Alternatively, they miss the opportunity to lock in a deal before the interest rates increase.

    If you take a look at the graph above you can see home prices and how they’ve been affected by previous recessions. Home prices continued to appreciate during 4 out of 6 recessions. While home prices wavered in 1991, and seriously plummeted in 2008, most economists don’t see this happening again. As we previously mentioned in last weeks article, the market is fundamentally very different from 2008.

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