Every time the word “recession” starts popping up in headlines, it brings a wave of uncertainty—especially for anyone thinking about buying or selling a home.
You might be wondering:
- Are home prices going to crash?
- Will mortgage rates skyrocket?
- Should I wait to make a move?
Totally fair questions—and you’re not alone in asking them. The good news is we can look to history to get some real answers.
Let’s break it down.
A Recession Doesn’t Automatically Mean Home Prices Will Drop
First, let’s clear up a common myth:
A recession is not the same as a housing crash.
Data shows that in 4 of the last 6 U.S. recessions, home prices actually went up, and in one, home prices dropped less than 2%. The exception was 2008—and that was a very specific situation involving risky loans, overbuilding, and a financial system that was already on the brink.