Unless you haven’t bought gas or gone to the grocery store recently, you may have missed the fact that we are experiencing record high inflation rates. Even my breakfast bacon has been affected by a rise in price!
Not unexpectedly when inflation persists, the talk of a recession quickly follows as it becomes likely that the Fed may make further efforts to slow the economy. Before we "lose our bacon" with worry, let's take a look at how the housing market generally performs during an economic downtown and more importantly, how you can take the best advantage of the current situation.
HOW DOES A HOUSING MARKET FARE IN A RECESSION?
Many folks may be surprised to find that traditionally, housing actually performs better in a recession when compared to other sectors of the economy.
For those of us who experienced the 2008 recession, we may well remember that there was a significant dip in the housing market during that time. However, we must not forget that at that time, the collapse of the housing market actually was the precursor of the recession, not vice versa. Today lenders are much more stringent in their lending policies.
During 2008, inventory was high and demand was low. Today we find ourselves remaining in a housing shortage. The issue of supply and demand is likely to keep home values appreciating, but at a much more normal pace.
So, if you’ve decided to delay a home purchase due to recession fear, maybe we should chat. History suggests that you may actually build a little equity during this time period if a new house would be a benefit to your situation.
Many factors are involved in selling or buying a home. I am here anytime to address your questions and to help you decide your “next best move.” (206) 999-5599