looming recession for housing market

By
Managing Real Estate Broker with John L Scott #86099

 

The impacts of recessions can be felt across the entire economy, everywhere from employment to spending to stock market movement, and even real estate. While the stock market and the housing market can fall during a recession, it isn't guaranteed to happen.

 
 
 

In fact, falling prices are less common than you may think. Home prices have remained steady or risen during the last five recessions, aside from the Great Recession and the recession of 1990.

High mortgage rates can deter people from buying, but as the recessions of the '80s and '90s showed us, when mortgage rates were as high as 18%, high rates doesn't mean demand or prices will falter. What really determines how the real estate market is affected is the impact on demand and affordability. 

Today's median income is around 30% of the median home price. In 1980, that number was almost 45%. The lower the percentage of income as it relates to the cost of housing, the less affordable housing is. 

Comments (1)

Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Thank you for the great information in your blog today to share with us here on the Rain.  Make it a great day! bill

Jun 15, 2022 02:24 PM