What Would A Recession Mean for the Housing Market
The history of recessions shows that they are a natural, though painful, part of the business cycle.
If you’re wondering what a potential recession could mean for the housing market, here’s what history tells us.
Home prices actually appreciated during most of them.
Depreciation happened during the early 90s and the housing crash in 2008 .
Mortgage rates declined during each of these events as well.
This goes to show that 2008 wasn’t the norm.
Recessions typically lead people to buy less expensive homes, which means there are more homes available on the market and prices tend to go down as demand goes down while supply stays high.
This leads to lower mortgage rates as banks compete with each other for customers who have less money to spend on their mortgages each month than those who bought during better times.
It's important now more than ever to partner with a trusted real estate team to help you navigate through this normalizing market.
Matt Smith Real Estate Group is here as a resource for you. If you want to learn more about the real estate market, reach out to us at 573-471-2020.