Recession: What of the Housing Market?

Regardless of political affiliation, I’m sure the talks of a recession can seem scary. Though which way our market will land isn’t decided yet, we figured you might be wondering how this could affect Real Estate as a homeowner or even a potential buyer or seller. The good news is the housing market will likely stay about the same.

According to historical data collected by CoreLogic, there was only one time we saw a dramatic fall in housing within the last 6 recessions and that was in 2008. 2008 was not a Gold Standard for how the market reacts during recession, but rather it was the outlier. In 1980, 1981, 2001, and 2020 recessions, the housing market actually saw an increase in prices.

Furthermore, according to data from Freddie Mac, mortgage rates typically see decline during recessions, as we have observed in varying degrees through the last 6 recessions. This doesn’t guarantee record lows. However, based on the data, a drop should occur as well.

If a recession does happen, then your investment in real estate is likely to be unaffected. If you decide to make a move in the near future, our agents here at MVP specialize in navigating the market so give us a call!