Velia Lala August 26, 2023
“A recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.”
The first occasion on the graph when home values depreciated was in the early 1990s when home prices dropped by less than 2%. It happened again during the housing crisis in 2008 when home values declined by almost 20%. Most people vividly remember the housing crisis in 2008 and think if we were to fall into a recession we’d repeat what happened then. But this housing market isn’t a bubble that’s about to burst. The fundamentals are very different today than they were in 2008. So, we shouldn’t assume we’re heading down the same path.
We’re not in a recession in this country, but if one is coming, it doesn’t mean homes will lose value. History proves a recession doesn’t equal a housing crisis.
Stay up to date on the latest real estate trends.
If recent headlines about rising inflation are making you wonder if it’s still a good time to buy.
A recession does not equal a housing crisis. That’s the one thing that every homeowner today needs to know.
Homeowners have a great opportunity to sell their house and receive the best terms for their situation.
Many homeowners began to wonder if the value of their homes would fall.
Velia loves helping her clients obtain their dream home. She understands buying a property from the Destin area is more than needing specific house features—it’s investing in the tranquil and desired lifestyle of owning near the beach.