History Proves Recession Doesn’t Equal a Housing Crisis [INFOGRAPHIC]

By
Real Estate Agent with Kona Home Team (luva llc) RS 62947

I get asked a lot about the market recently, so just think of it like this:
Imagine you are driving down the highway. The speed limit is 65 mph, but you and the many other cars on the road are humming along at 85-90 mph. You’ve been traveling this speed for well over an hour. You are making great time. You feel great. But then you notice that cars coming toward you are flashing their headlights. You know what that means: an upcoming speed trap. Lo and behold, in the distance you spot a car on the side of the road. You slow down to 65 mph, just in case, and as you approach the car you see it’s a police vehicle with an office pointing a radar detector at the traffic. Because you slowed down, you don’t get pulled over for speeding, but now you and the cars around you are all traveling at the speed limit of 65 mph. Even though that’s the correct speed to be traveling, you feel like you’re moving at a snail’s pace. You’re agitated because you perceive that you’re moving so slow. Are you really moving as slow as a snail? Of course not. Sixty-five miles per hour is fast. It’s also the normal speed limit. Going this speed, you will definitely reach your destination within a reasonable time. However, because you spent so long going so fast, your perception is that you’re barely moving now.

This analogy describes the current real estate market perfectly. I expect our single family homes to slow from todays (YTD ) of 16.09% to about 4-7% appreciation by the end of the year. Condos will be another story, they are at 29% appreciation YTD, and will probably slow to 10-15% appreciation by the end of the year.

Full disclaimer, this is just an educated guess, based on my 19 years experience here in West Hawaii, I do not claim to have a crystal ball

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Aloha, and have a great day 

Lance Owens (RS)

(808) 936-8383

Lance@KonaHomeTeam.com

www.KonaHomeTeam.com

LUVA Real Estate 

75-240 Nani Kailua Dr #8 , Kailua Kona, HI. 96740 (Pines Plaza

Comments (4)

Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

We have been cruising along at warp speed for some time, haven't we? Slowing down to a more normal market may provide us all with more balance.

Jun 03, 2022 03:40 PM
Kona Home Team (luva llc) Lance Owens (RS)

Totally agree, I often hear remarks ... Realtors must love this market - lol, I just got back from DC and overwhelmingly the response was NO, we do not like this market! It would be nice to have a normal market again. 


 

Jun 03, 2022 03:47 PM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Very good helpful report about history proves recession doesn't equal a housing crisis. 

Jun 03, 2022 04:48 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

GREAT analogy!  Very well said. Just like interest rates averaging higher during the last 20 years, anything under 6 % is a good rate!  Great post!

Jun 04, 2022 11:39 AM
Kona Home Team (luva llc) Lance Owens (RS)

Thank you Jan, and yes interest rates are not terrible looking at history 

Jun 13, 2022 05:04 PM
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Found great value in your information.  I agree, we don't have a crystal ball, however, the writing is on the wall.  So, I have been watching, waiting and sharing my local knowledge and predictions to my clients and see the same things you are saying. Time will tell the whole story.

Jun 06, 2022 08:48 AM