As talk about a potential recession grows, you may be wondering what a recession could mean for the housing market. Here\u2019s a look at the historical data to show what happened in real estate during previous recessions to help curb fears of what a recession could mean for the\u00a0housing market\u00a0today.<\/p>\n\n\n\n
To show that home prices don\u2019t fall every time there\u2019s a\u00a0recession<\/a>, it helps to turn to\u00a0historical data<\/a>. Looking at recessions going back to 1980,\u00a0home prices\u00a0appreciated in four of the last six of them including 1980, 1981, 2001 and 2020. Historically, when the economy slows down, it doesn\u2019t mean home values will always fall.<\/p>\n\n\n\n Most people remember the\u00a0housing crisis\u00a0in 2008 and think another recession would be a repeat of what happened to housing then. But today\u2019s housing market\u00a0isn\u2019t about to crash\u00a0because the fundamentals of the market are different than they were in 2008. According to\u00a0experts, home prices will vary by market and may go up or down depending on the local area. But the average of their\u00a02023 forecasts\u00a0shows prices will net neutral nationwide, not fall drastically like they did in 2008.<\/p>\n\n\n\n Research<\/a>\u00a0also helps paint the picture of how a recession could impact the cost of financing a home. Historically, each time the economy slowed down,\u00a0mortgage rates<\/a>\u00a0decreased in 1980, 1981 1991, 2001, 2008 and 2020.<\/p>\n\n\n\nA Recession Means Falling Mortgage Rates<\/strong><\/h4>\n\n\n\n