April 22, 2020
Home Price Change During Last 5 Recessions?
What is a recession? A recession is two consecutive quarters with declined GDP growth. Are we in a recession now? Not yet. Are we headed for one? According to Goldman Sachs, we are (see graph). As we can't advise you financially, but we can help educate you. What do these past recessions tell us? They tell us that just because we're in one, it doesn't' necessarily mean home values are going down as well. In fact, homes appreciated in value during 3 out of the last 5 recessions! Analysis are saying the next one might actually be more closely related to 2001. What happened then? Unfortunately, 9/11 happened. Travel came to a halt and the stock market reacted with a sharp 25% decline.
What did home values do? They increased by 6.6%.
If you would like to explore the opportunity of home ownership, we are here to help.