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History Proves Recession Doesn’t Equal a Housing Crisis Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert

History Proves Recession Doesn’t Equal a Housing Crisis Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert

By Christophe Choo Posted Jun 17, 2022 Beverly Hills, Featured, Latest Updates, Market Activity, Real Estate Articles, Real Estate News, What I'm Reading

History Proves Recession Doesn't Equal a Housing Crisis Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert

  • Home prices have appreciated in 4 of the last 6 recessions
  • Home prices fell only twice - minimally in the early 90s, and then by nearly 20% in the housing crash of 2008.

Today's housing market is nothing like it was in 2008

Home Prices vs. Unemployment Rate

Unemployment generally has a bigger impact on sales volume than prices

As you can see in the chart above, home prices and the unemployment rate have an inverse relationship - when unemployment goes up, home prices tend to go down. However, the correlation is far from perfect, and home prices have actually appreciated during periods of high unemployment in the past. This is likely due to the fact that interest rates are also low during these periods, making homes more affordable for buyers.

What This Means for Home Buyers

If you're thinking of buying a home, don't let the fear of a recession dissuade you

While a recession can certainly have an impact on the housing market, it's important to remember that recessions don't always equal a housing crisis. Home prices have actually appreciated in 4 of the last 6 recessions, and even during periods of high unemployment, there have been periods when prices have gone up. So if you're thinking of buying a home, don't let the fear of a recession dissuade you - instead, focus on finding a property that meets your needs and is within your budget.

Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" 

or click "HERE"to estimate your home value

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