Real Estate in Southern Utah
Karey Maniscalco
435-703-4584435-703-4584

Is The Market Headed For A Recession?

What can history teach us about economic recessions and the impact on your home’s value?

Looking back over the last five recessionary periods, real estate has done quite well.

 

Home values nationally increased in the 1980, 1981, and 2001 recessions. 

The clear outlier here was the Great Recession, where home values were down 19.7% nationally.

Recession HIstory

The six gray bars below show every recession in the last fifty years.  As you can see, home values have continued to increase at around five percent annually despite these periods of economic contraction.

50 year rate

The Great Recession is the clear outlier. 

Home values were hit especially hard during this time due to massive speculation in real estate and the sub-prime mortgage bubble that artificially inflated the market on a national level.

Today’s real estate market has been fueled by real demand, buyers who have documented their income, their down payment, and their ability to pay back the mortgage loan.

We are in a very different real estate market today. So when we do enter the next recession, it’s likely we will see interest rates go down (as they almost always do in recessions), which will make housing more affordable for first time home-buyers?

Why is that important you ask?

The next wave of first time home-buyers is upon us.  The average first time homebuyer is now 33 years old and Millennials are now hitting that age at a pace not seen since the Baby Boomers.

This influx of first time home buyers, along with lower mortgage rates and more affordable payments, should continue to push home values higher – in spite of the inevitable recession that will arrive at some point.

 

millenial buyers

I hope this information has helped you overcome your apprehension of the housing market and I invite you to contact me directly with any questions you may have.

Leave a Reply

About Karey Maniscalco

Picture of Karey Maniscalco

Karey Maniscalco

Realtor- Realtypath

kareysells@gmail.com

435-633-9080435-633-9080 main

Karey Maniscalco & Associates with RealtyPath

113 East 200 North St George, UT 84770

Facebook Feed

Reviews

5nicole danny

Karey was great!! She went above and beyond to find my family the perfect home. We were first time buyers and she took the time to explain things to us, she was on top of all the paper work and emails & walked us through the whole process !

5Jamiej4

Karey is a top notch Realtor! I highly recommend her! She goes above and beyond and works hard to get what you want in buying and selling of your home! I have used other realtor's and would never use anyone other than her again!

5AlisaBrewer666

I am absolutely DELIGHTED to offer my review of Karey. We contacted her at the beginning of February, 2016. We had been offered a purchase price on the house that we had been renting for a year....and we had NO IDEA what to do next. My friend, who bought... (more)

Review Karey Maniscalco on Zillow.com