A Recession Does NOT Mean Falling Prices!

Hey Everyone, Brian Reed here with The Ryan & Brian Real Estate Team.  There is a lot of uncertainty about whether now is a good time to buy a home with a potential recession.  Today we are going to discuss why a recession does not mean falling home prices!

A recession does not mean falling home prices.  In fact, as this graph shows, in four of the last six recessions, home prices actually appreciated in value and in one case took a very small dip.

The one exception being 2008 when home values lost nearly 20% value, but that was a very fundamentally different place than where we are today. The market was drastically different.

 

We had loose lending standards which we don’t have now that led to a self induced market crash.  Most real estate experts are predicting home appreciation even if we do have a recession. 

This is the home price forecast for 2022 it follows seven key industry leaders on home pricing.

The average of all seven is showing a 10.3% home price appreciation through the end of this year. Last year we saw an average of 15% home price appreciation.

We’re not necessarily looking at the rate of appreciation like we have seen over the last two pandemic years, but nationwide in most markets, experts are saying we will have appreciation in spite of a possible recession.

So don’t believe the hype!  A recession does not mean falling home prices. And if we are looking at a recession, real estate has continuously proven in the past to be one of the safest places to invest your money.  If you would like to discuss this further, we have a team of experts available to answer your home buying questions and ready to help you reach your home buying goals. 

Call us today for a free consultation at 956-203-0044.  We look forward to hearing from you soon.