A recession may be coming, but this doesn’t mean real estate is also headed for a crash. Let’s discuss why this is the case today.
There is a general consensus that we’re headed for a recession, but will this economic slowdown impact our real estate market?
Simply put, no. Only one of the last five recessions was coupled with a significant housing market crash, and, in that case, the relationship between these events was simply correlative—not causal.
“We aren’t in for a repeat of 2008 any time soon.”
When you consider this in conjunction with the fact that approximately 56% of American homeowners now have more than 50% equity in their homes, it’s clear that we aren’t in for a repeat of 2008 any time soon.
Homeowners are spending their equity more wisely these days, and lending standards have become more strict. There is truly no cause for panic.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.
