#housingmarket #economicrecession #recession #housingcrash #biggerpockets
In this video, I'll explain what the past five recessions can tell us about what might happen to the real estate market.
Most of us are familiar with the last recession in 2008 and 2009 and the beating the housing market took; you'd be forgiven if you believed that was what the prior 4 recessions tell us.
Of the remaining 4, only 1 had a home value decrease, and it it was only 1%.
The remaining three recessions actually resulted in home price increases from start to finish.
Only the last recession of 2008-09 was a result of a housing/financing calamity. However, in most cases, when the world becomes unstable, real estate starts looking very stable.
Unless the market forces a significant wave of foreclosures, we may find that homeowners are willing to hang on to their homes and the lower interest rates a little longer than normal to ride this recession out.
This offers little relief to homebuyers as current interest rates have resulted in the record cancelations of home builder contracts, resulting in builders curtailing building plans and existing homeowners riding out the storm. Multi-family and self-storage should continue to see strong renter demand even if traffic has slowed tremendously.
https://www.realtrends.com/articles/what-past-recessions-teach-us-about-todays-real-estate-market/
