Will Home Prices Fall During a Recession? -Team Tag It Sold

What would a Recession mean for the Housing Market, Mortgage Rates, and Home Prices in Metro Detroit MI in the 2nd half of 2022?

According to a recent survey from the Wall Street Journal, the percentage of economists who believe we’ll see a recession in the next 12 months is growing. When surveyed in July 2021, only 12% of economists consulted thought there’d be a recession by now. But this July, when polled, 49% believe we will see a recession in the coming 12 months.

And as more recession talk fills the air, one concern many people have is: should I delay my homeownership plans if there’s a recession?

Here’s a look at historical data to show what happened in real estate during previous recessions to help prove why you shouldn’t be afraid of what a recession would mean for the housing market today.

A Recession Doesn’t Mean Falling Home Prices

To show that home prices don’t fall every time there’s a recession, it helps to turn to historical data. As the graph below illustrates, looking at the recessions going all the way back to 1980, home prices appreciated in four of the last six recessions. So, historically, when the economy slows down, it doesn’t mean home values will fall.

Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession would repeat what happened then. But this housing market isn’t about to crash. The fundamentals are very different today than they were in 2008. So, don’t assume we’re heading down the same path.

A Recession Means Falling Mortgage Rates

Research also helps paint the picture of how a recession could impact the cost of financing a home. As the chart below shows, historically, each time the economy slowed down, mortgage rates decreased.

Fortune explains that mortgage rates typically fall during an economic slowdown:

“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”

And while history doesn’t always repeat itself, we can learn from and find comfort in the historical data.

Step #1 ~ Metro Detroit Real Estate Home Prices and Trends by City

💥 Important 💥 This is Where You Track Home Prices and Housing Inventory Levels (Supply and Demand) updated monthly by the 15^th.

Whether you are Home Buying or Home Selling, this should be your starting point. Remember, the numbers in the graph and trends represent your money. Spend less when buying and make more when you sell.

As a programmer you have full access to everything in the multiple listing service on my website. You don’t need a realtor to access the data. Before you start working through the 5 steps, start with understanding the difference between Price-Driven Approach vs Value-Driven Approach. It has everything you need to determine the Market You’re In and review your city’s 3-year live trends regarding home prices. Better yet, you can even review Sold properties and not rely on online estimates. I’ve provided additional videos regarding the housing market and how you can benefit from all the tools on this page. Whether you’re selling or buying real estate now or later. I recommend keeping up to date and protecting your real estate investment. It’s essential to follow the Housing Market Trends for Metro Detroit and know The Market You’re In, and it’s the only way you’ll know your true Negotiation Power.

Step #2 ~ Your 🔑 To Home Selling and Buying Success ~ Safe e-Guides

💥 Important 💥 Your Guides also have educational videos and links regarding where home prices are heading, mortgage rates, Housing Market Trends, and more.

Watch Video for Sneak Peak

Don’t muddle through the Home Buying and Selling Process. Buying a new home is a dream for all of us, and it’s an emotional and stressful process. It also involves the most significant financial transaction you probably will make in your lifetime.

Play Video about Real Estate Guides for Home Buying - Home Selling or Summer 2022

Your Buying Guide…will walk you through tips, strategies, and how to understand the numbers to strengthen your negotiation power.
Your Selling Guide…It will help you work through the selling process using the latest in high-tech market tools, so you make MORE Money. Our goal is to separate your home from the competition and keep Buyers focused on your house. The Selling Guide is very detailed and works step-by-step, so you’re guaranteed Top Dollar for your home.

Step #3 ~ Look up Sold Data by your location.

💥 Important 💥 Modify your search and select home criteria closest to the features and benefits of your home to compare.

You Have Direct Access to the Multiple Listing Service to Look Up Sold Data. You don’t need a realtor to find Sold Data from the Multiple Listing Service.

When I started in real estate 22 years ago, I found many homeowners and home buyers were relying on their agent regarding Price vs finding an agent that will help them work through the education process regarding Value. See the difference between Price Driven Approach vs Value Driven. One thing I learned is that numbers do represent your money. Either you leave money on the table for the buyer when you sell or spend more than you should when you buy. Agents pick the houses and bring you the comps and recommend a price based on the data they pulled; vs. you have the access to the data and work through the process of value together and you select the best price for your home, not the agent. You have options to double-check the numbers, it’s your money.

Bottom Line: If there is a Recession and Home Prices

There’s no doubt everyone remembers what happened in the housing market in 2008. But you don’t need to fear the word recession if you’re planning to buy or sell a home. According to historical data, in most recessions, home price gains have stayed strong, and mortgage rates have declined.

If you’re thinking about buying or selling a home, let’s connect so you have expert advice on what’s happening in the housing market and what that means for your homeownership goals.

Simplifying Real Estate Through Education

As we move forward, it’s been challenging as we navigated through all the changes. Putting your dream of a new home on HOLD shouldn’t be one of them. Now more than ever, knowledge will be your power. Track Metro Detroit Home Prices and Trends and your Negotiation Power. Check out Categories for additional updates regarding the Market | Buying | Selling

If You Need To Sell 1st… I Recommend 🛑Doing This!

No 2 homes are alike, and agents need to 🛑 marketing ONE size fits all. We no longer have an exposure problem (internet). Your home is buried on public home search internet sites. The only way to compete on those platforms is the price. If you want more money, you need to apply Influence. Separate your home from the competition, so the Buyer sees value. Keeping them focused on your property and not getting lost in homes’ inaccurate data on public internet sites is necessary. Having digital omnipresence on serval platforms is your key to success. Remember MORE INFLUENCE = MORE 💰. We have details on how you can utilize High Tech Marketing and Win!

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