The word recession is enough to send chills down anyone’s spine, especially homeowners and homebuyers. What will happen to the housing market? Will we see another housing crisis like 2008?
Fortunately, the answer is ‘no, we will not see another housing crisis.’ Here’s why.
🔸 Home Prices Remain High
If you’ve monitored the housing industry over the last couple of years, you know home prices are wildly inflated. That was due to the crazy high demand and much lower supply. It was a natural turn of events.
🔸 Supply is Still Low
A recession may cause lower demand for housing, which isn’t bad. Right now, demand still exceeds supply, keeping prices elevated. If demand falls, it will equal the supply or close to it, and even out the playing field.
🔸 It Would Still be a Good Market for Buyers
Today’s situation is different. The Fed normally floods the economy with money to stop the recession. This time, however, the recession is a good thing because it will stop the crazy inflation we’ve had last year.
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