Past recessions have typically affected the housing market in a variety of ways. Generally, declines in home prices have been observed during recessions, followed by a period of slow recovery. During the recession, people may choose to wait out the market rather than buy or sell a home, resulting in fewer transactions and lower home values. Additionally, mortgage lending standards may become more stringent during recessions, making it more difficult for potential buyers to access financing. This can also lead to fewer transactions and slower home price growth.
At the same time, recessions can present opportunities for buyers who are able to access financing. Lower home prices can make it easier to purchase a home, and the increased availability of foreclosures and short sales can provide buyers with more options. In addition, some homeowners may be motivated to sell their homes quickly, creating a buyers’ market.
Overall, past recessions have typically led to declines in the housing market, though buyers may be able to take advantage of opportunities that arise during this time. Therefore, those considering buying or selling a home should pay close attention to the economic environment and be prepared to act quickly if a good opportunity arises.
If you’re thinking about buying or selling a home this year, let’s connect so you have expert advice on what’s happening in the housing market and what that means for your homeownership goals.