The Covid-19 soft lockdown in Austin, Texas has lead to the same question from our clients:
"What happens to Austin house prices during a recession?". Actually the question is often, "What is going to happen to my Austin house price as a result of Covid-19?", and we'd be remiss if we said we could foretell the future. So we look at the first question - what's happened in the past?
There are a few sources of recession data, from Wikipedia's list of recessions to squabbles about the definition of recession by economists. For now, we just took a look at the last two big US recessions as they gave us the best data. In addition to wikipedia, we took a chart from FRED's economic data - really quite a good site to get easy charts of economic data.
If you want the full analysis of what happens to Austin house prices during a recession, check out our full article.
If you want the tl;dr version it's this:
Not much! The recessions impacted sales volume and inventory - the market shifted to a buyers' market, and less homes were sold with higher inventory. But prices remained fairly stable, or grew slightly.
Give us a call on 512 215 4785 if you'd like to find out the answer to the second question - about your house!