There is a lot of debate of whether we are headed into a recession or if we are already in one. The big R word is scary to a lot of people but do you know how recessions have historically affected the real estate market?
I’ll explain in this video how each recession we have experienced going back to 1960 has affected home values. You might be surprised to know that in all recessions except one, home prices have increased during and after the recession.
The only recession in the last 60 years that saw home prices decrease was the recession caused by the 2009 housing crash. That recession was very different from previous recessions and is the complete opposite of today’s real estate market situation.
The 2009 housing market crash was caused by poor lending practices, over supply of homes and surprisingly, a dip in demand due to a change in population.
The data showing how each recession has affected the real estate market and housing prices paints a very good picture for what is about to happen as a recession forces mortgage rates back down. As a homeowner, you shouldn’t be concerned about a recession but if you are a potential buyer, you might see that the best time to buy a home could be now or in early spring 2023.
I believe that the Northern Colorado Real Estate Market is going to be crazy in 2023 when mortage interest rates start to decrease. There is a lot of demand for homes. I think this supply and demand problem is going to keep driving up prices. Do you disagree?
Let’s discuss. You can contact me through this website or call or text me at 970-203-5066.