Will a Recession Cause a Housing Crash like 2008?
With all the volatility in the stock market and uncertainty about the Coronavirus (COVID-19), some are concerned we may be headed for another housing crash like the one we experienced from 2006-2008.
And it makes sense that buyers and sellers remember the horrors of 2008 when they hear the word “recession.” Ali Wolf, Director of Economic Research at the real estate consulting firm Meyers Research, addressed this point in a recent interview:
“With people having PTSD from the last time, they’re still afraid of buying at the wrong time.”
Most experts, however, believe if there is a recession, it will not resemble 2008. This housing market is in no way the same as it was just over a decade ago.
Read the blog post, 5 Simple Graphs Proving This Is NOT Like the Last Time, then share it or each of the graphs from the blog.
Many people fear the stock market volatility from the pandemic is going to cause another recession.
Whether or not that happens, it’s important to remember one very important thing:
A recession does not equal a housing crisis or “crash” like we saw in 2008.
A recession doesn’t even mean that home prices will depreciate. If you look at the above graph, you’ll see that in the five most recent recessions, only two of them saw values decline.
While we may not know what the future holds, if you are pausing on buying or selling a home because you think a recession will cause another housing crisis…they’re not the same thing, and you could be missing out on today’s record-low mortgage rates.
your trusted real estate advisor.
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