Last week, realtor.com released a survey of active home shoppers (those who plan to purchase their next home in 1 year or less). The survey asked their opinion on an impending recession and its possible impact on the housing market.
Why all the talk about a recession recently? Over the last year, four separate surveys have been taken asking when we can expect the next recession to occur: The Pulsenomics Survey of Market Analysts The Wall Street Journal Survey of Economists The Duke University Survey of American CFOs The National Association of Business Economics
However, according to research done by CoreLogic, home values weren’t negatively impacted as they were in 2008 during the previous four recessions: Homebuyers Shouldn’t Worry About 2008 All Over Again | MyKCM
During the four recessions prior to 2008, home values depreciated only once (at a level that was less than 2%). The other three times home values appreciated, twice well above the historic norm of 3.6%.
Bottom Line If there is an economic slowdown in our near future, there is no need for fear to set in. Most experts agree with Ralph McLaughlin, CoreLogic’s Deputy Chief Economist, who recently explained that there’s no reason to panic right now, even if we may be headed for a recession. “We’re seeing a cooling of the housing market, but nothing that indicates a crash.”