According to The Balance, there have been 19 noteworthy recessions in the history of the United States, so there's no wonder why fear comes into mind when people hear about the word "recession".
While it is true that many unfortunate things happened during those times, a recession doesn't mean that home prices will instantly fall.
Historical data shows that out of six recessions starting from 1980, home prices have appreciated in four of them. This means that even if the economy is a bit sluggish, home prices do not automatically come down. Most people fear an impending housing crash because they are focused on what happened in 2008. The good thing is that lending standards today are not the same as before. As First American Deputy Chief Economist says:
"This is not the same market of 2008. . . . It’s no secret the housing market played a central role in the Great Recession, but this market is just fundamentally different in so many ways.”
Source: The Balance, Keeping Current Matters, CoreLogic
One might ask, so what is falling then? Based on research, when the economy slows down, there is a possibility that mortgage rates will decrease, too.
Source: Keeping Current Matters, Freddie Mac, Mortgage Specialists
When hearing hot topics in the news, it is always important to look at accurate resources. It's never a good thing to fear the unknown. The best thing to do is look at historical data and not let words block our way, in terms of buying or selling a home.
If you are a real estate agent and you want to help clients get the home of their dreams, it is vital to not let emotions or personal preferences affect the information that you will provide. It is best to check the data available, so you can provide proper advice.
If you are looking for a real estate team that can keep you in the loop in terms of the real estate market, or you just want to be guided about the best real estate practices that can help you get people into the closing table, reach out to us so we can help you be the best Long Island Realtor® or even a Realtor® from any part of the globe.
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