The signs are there; we are headed into a recession. But what does a recession mean for home values? Today, Dan takes a look back at recessions across the last 40 years and exactly what happened to home values each time the market dropped. The results may surprise you!
The Federal Reserve is walking a fine line; they are using interest rates to try and slow down inflation without plunging us into a major recession. But economists agree, a recession is on the way. When surveyed in July of last year, only 12% of economists thought there would be a recession by now. This July, 49% agreed we will see a recession within the next year.
Don’t let this outlook discourage you! Historically, home values do not plummet during recessions. Going all the way back to 1980, home prices not only stayed constant but actually appreciated in four of six recessions. Most people remember the dramatic housing crash of 2008 and fear that is what’s next for us. But this housing market is not about to crash. With housing inventory still low from the pandemic, low interest rates (historically speaking), and steady buyer demand, the market is returning to normal after a frenzy rather than crashing.
So, home prices are staying steady through the oncoming recession and may even appreciate through it. That’s great news for homeowners, but what about homebuyers? Is now a good time to purchase a home, or should buyers delay because of the recession?
Dan’s answer? Buy now. Home prices will continue to appreciate and in Greenville, home affordability will continue to change. Purchase now and let steady home appreciate benefit you rather than keep you from owning a home. If you are trying to decide if now is the time to buy a home, consider your personal financial position and long-term goals, not real estate market factors. The market is always changing and “timing it right” is not a good strategy.
Once you’ve decided now is a good time for you and/or your family to purchase a house, let your real estate agent help you navigate the day’s market factors.
To learn more about the current economic factors impacting the real estate market in Greenville, listen to the rest of Dan’s special segment on My Greenville Home Radio:
Dan Hamilton is the founder of Hamilton & Co. and the lead listing agent for the team. He is the only agent in the Upstate endorsed by Shark Tank star and real estate mogul Barbara Corcoran. Additionally, Dan hosts a weekly radio show on The Answer 94.5 and 106.3 WORD giving tips and advice on real estate and is a frequent contributor for real estate on Your Carolina TV show on WSPA Channel 7. Visit mygreenvillehome.com to learn how Dan can help you sell your home.