Here’s why an economic recession isn’t all bad news for homeowners.


The one thing that every homeowner needs to understand about a recession is that it does not equal a housing crisis. Everywhere you look, experts are warning us of a recession and potential crash. Even if the market corrects, an economic slowdown doesn't mean homes will lose value. 


Take a look at the graph at 0:40. There have been six recessions in this country since 1980. However, home prices actually appreciated during four of those recessions. When the economy slows down, it doesn’t mean home values will depreciate. The only times they have depreciated were during the savings and loan crisis of 1991 and the housing crash of 2008.

“History has proven that a recession doesn't equal a housing crisis.”


Most people just remember the 2008 crash and think we’ll go through something similar if we have another recession. That's just not true. Today’s fundamentals are very different from what they were in 2008. Mortgage lending and banking practices are much more stable than they have been in the past.


History has proven that a recession doesn't equal a housing crisis, and even if one comes, we won’t necessarily see homes drop in value due to our current market conditions. If you have any questions about the market or real estate in general, don’t hesitate to reach out by phone, email, or click this link to submit a contact request. We look forward to hearing from you soon.