{"id":3204,"date":"2022-08-16T10:00:26","date_gmt":"2022-08-16T10:00:26","guid":{"rendered":"https:\/\/sandpointrealtyidaho.com\/blog\/2022\/08\/what-would-a-recession-mean-for-the-housing-market\/"},"modified":"2022-08-16T10:00:26","modified_gmt":"2022-08-16T10:00:26","slug":"what-would-a-recession-mean-for-the-housing-market","status":"publish","type":"post","link":"https:\/\/sandpointrealtyidaho.com\/blog\/2022\/08\/16\/what-would-a-recession-mean-for-the-housing-market\/","title":{"rendered":"What Would a Recession Mean for the Housing Market?"},"content":{"rendered":"

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\n

$\"What$ <\/p>\n

According to a recent survey<\/a> from the Wall Street Journal<\/em>, the percentage of economists who believe we\u2019ll see a recession in the next 12 months is growing. When surveyed in July 2021, only 12% of economists consulted thought there\u2019d be a recession by now. But this July, when polled, 49% believe we will see a recession in the coming 12 months.<\/span><\/p>\n

And as more recession talk fills the air, one concern many people have is: should I delay my homeownership plans if there\u2019s a recession? <\/em><\/p>\n

Here\u2019s a look at historical data to show what happened in real estate during previous recessions to help prove why you shouldn\u2019t be afraid of what a recession would mean for the housing market today.<\/strong><\/p>\n

A Recession Doesn\u2019t Mean Falling Home Prices<\/strong><\/h4>\nTo show that home prices don\u2019t fall every time there\u2019s a recession<\/a>, it helps to turn to historical data<\/a>. As the graph below illustrates, looking at the recessions going all the way back to 1980, home prices<\/a> appreciated in four of the last six recessions. So, historically, when the economy slows down, it doesn\u2019t mean home values will fall.<\/p>\n
$\"What$ <\/a><\/p>\n
Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above<\/em>) and think another recession would repeat what happened then. But this housing market isn\u2019t about to crash<\/a>. The fundamentals<\/a> are very different today than they were in 2008. So, don\u2019t assume we\u2019re heading down the same path.<\/p>\n
A Recession Means Falling Mortgage Rates<\/strong><\/h4>\nResearch<\/a> also helps paint the picture of how a recession could impact the cost of financing a home. As the chart below shows, historically, each time the economy slowed down, mortgage rates<\/a> decreased.<\/p>\n
$\"What$ <\/a><\/p>\n
Fortune<\/em> explains<\/a> that mortgage rates typically fall during an economic slowdown:<\/p>\n
\n
\u201cOver the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. <\/strong>And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.\u201d<\/em><\/p>\n<\/blockquote>\n
And while history doesn\u2019t always repeat itself, we can learn from and find comfort in the historical data.<\/p>\n
Bottom Line<\/strong><\/h3>\n
There\u2019s no doubt everyone remembers what happened in the housing market in 2008. But you don\u2019t need to fear the word recession<\/em> if you\u2019re planning to buy or sell a home. According to historical data, in most recessions, home price gains have stayed strong, and mortgage rates have declined.<\/p>\n
If you\u2019re thinking about buying or selling a home, let\u2019s connect so you have expert advice on what\u2019s happening in the housing market and what that means for your homeownership goals.<\/p>\n<\/div>\n\n<\/body>","protected":false},"excerpt":{"rendered":"
According to a recent survey from the Wall Street Journal, the percentage of economists who believe we\u2019ll see a recession in the next 12 months is growing. When surveyed in July 2021, only 12% of economists consulted thought there\u2019d be a recession by now. But this July, when polled, 49% believe we will see a […]<\/p>\n","protected":false},"author":1,"featured_media":3205,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[12],"tags":[29,27,20,18,28],"class_list":["post-3204","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-insight","tag-idaho-real-estate","tag-north-idaho-homes","tag-rain-silverhawk","tag-real-estate","tag-sandpoint-idaho"],"aioseo_notices":[],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/sandpointrealtyidaho.com\/blog\/wp-content\/uploads\/2022\/08\/20220816-KCM-Share-549x300-1.jpg?fit=549%2C300&ssl=1","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pdz2Zu-PG","_links":{"self":[{"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/posts\/3204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/comments?post=3204"}],"version-history":[{"count":0,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/posts\/3204\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/media\/3205"}],"wp:attachment":[{"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/media?parent=3204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/categories?post=3204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/tags?post=3204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}