Think a Recession Means a Housing Crash? Think Again

When you hear "recession", it's easy for you to imagine a huge drop in home values, panic on the market and headlines scream about a housing collapse. The truth is that history has a very different narrative.

Did you know not all recessions lead to a decline in home values? During 4 of the 6 recent U.S. economic recessions, home values actually rose . This is because the housing markets doesn't just follow the economic or stock market ups anddowns. It's driven by demand and supply.

Even when the economy is slowing, people need to have a home. Prices can rise or even remain stable if there are not enough houses for sale. It is for this reason that blanket statements such as "a housing crash equals a recession" can be misleading.

What really matters?

• Local inventory levels
• Demand for your products in your area
• Trends in interest rates and affordability
• Housing supply in the long-term

Understanding your market and looking at the real data is what will help you make smart decisions about real estate.

Before you put off your plans to purchase or sell a home because of concerns about the recession, keep in mind that housing doesn't fall apart just because an economy is slowing down. You can still achieve long-term success with a well-timed and well-informed decision.