💡 A Recession Doesn’t Always Mean Falling Home Prices
👉 With increased chatter about a possible recession, many are questioning what that could mean for the housing market. Will home prices drop significantly like in past economic downturns? While it’s a valid concern, history tells a more reassuring story.
📊 Historical Perspective – Recession Doesn’t Mean Falling Home Prices
It’s a common assumption that a recession leads to lower home values, but the data often tells a different story. In several previous recessions, home prices either remained steady or even increased. This is because the housing market doesn’t always move in lockstep with the broader economy.
Limited housing supply, continued buyer demand, and market resilience have helped keep prices stable—even during challenging times. So while the economy may slow, that doesn’t automatically mean housing values will follow.
📉 Why Home Prices Could Stay Strong
One of the key reasons home prices can hold up during a recession is falling mortgage rates. When the Federal Reserve lowers interest rates to boost the economy, borrowing becomes cheaper. This increases buyer affordability and demand, which can help sustain or even grow home values during uncertain times.
🏡 What This Means for You
Instead of waiting for prices to fall, it might be smarter to look at the real numbers and trends. If you’re considering buying or selling, now could still be a great opportunity—especially with fewer competitors and favorable financing conditions.
📲 Call Stephen Haw at (310) 503-9886 to talk about your real estate goals.
DRE# 00808646
Keller Williams Palos Verdes Realty
🌐 www.StephenHaw.com