A common question we are getting from our clients lately is whether or not we see a recession coming that will affect the housing market? Well, if you take a look back at the last 5 recessions we’ve gone through here in the U.S., only two of those have lead to a housing collapse.
Last 5 Recessions:
1980 – prices increased 6.1%
1981 – prices increased 3.5%
1991 – prices decreased 1.9%
2001 – prices increased 6.6%
2008 – prices decreased 19.7%
Many economists believe that an economic slowdown is on the horizon, but that does NOT mean a depreciation in home prices is coming as well. Actually, the latest projections from the Home Price Expectation Survey show an annual appreciation in line with historic norms. Don’t fall victim to the belief that prices will drop any time soon.
Along with the steady market conditions, mortgage rates are down nearly a FULL percentage point since this time last year, according to data from Freddie Mac. Actually, rates have declined to the lowest levels in several years and it’s the perfect time to lock in your mortgage! If you’re still on the fence, give us a call with your questions and we’re happy to discuss the details of how much your mortgage rate will affects monthly house payments.
