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If you follow the news, one word that keeps popping up is “recession.” Will there be one? Are we in one? What is it and what will it mean for your family? These questions may have you wondering whether it’s a good time to buy a home.

The Great Recession of 2008-2009 brings back a lot of memories, but some of them aren’t true. Simply put, the facts tell a different story.
You aren’t alone if you remember that the Great Recession caused the housing bubble back then. But it really was quite the opposite. The housing bubble, which burst in unexpected ways, actually led the U.S. into the recession.

Risky, non-verified mortgages were commonplace during the housing bubble. The lack of home inventory, combined with much lower buyer demand, created chaos in the housing market. Sharp declines in home values left many Americans owing more than their homes were worth. This perfect storm resulted in the recession — not the other way around.

Today’s housing market is much stronger. There are three million fewer homes for sale now, than in 2009. Plus, more regulations are in place to prevent a repeat of the housing crisis. A top priority in the mortgage and real estate industries now is putting people in safe loans they qualify for to protect buyers and sellers alike.
There have been eight recessions since 1960. In general, house prices remained stable during them, and home sales have played a role in jumpstarting the economy following recessions.

Many factors have affected home prices across the country, but home values are likely to increase at more of a normal level in the future. Buying a home remains a good investment for individuals and families.
Contact your trusted mortgage expert with questions about buying a home, where values may be headed or how current events may affect the housing market.

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