August National Market Update #1
Make no mistake, the state of the economy is what many people are thinking about. Globally, according to The Wall Street Journal, three-quarters of CEOs feel that we are in a recession or will be in the next 12-18 months. This can definitely affect the real estate market, and we are seeing the market shift as we speak. Homes aren’t flying off of the shelf anymore, we aren’t seeing bidding wars, and as interest rates continue to increase, and increase steadily, we see that buyers have less buying power and are unsure of what to do. Let’s look at what the real estate experts and advisors have to say.
Hi, I’m David Hitt, my goal is to help you navigate this ever-changing market. Let’s look at how mortgage rates have behaved over the last 40 years during times of recession. While there is no way to know how the market will behave and what will happen, it’s still good to reflect on how past recessions have historically affected the real estate market.
Over the last 40 years, you can see that mortgage rates have actually fallen during times of recession, an average of 1.8 percentage points from peak over the last 5 recessions. History also tells us the recessions does not automatically mean we are going to see a housing crisis.
So as you consider your next real estate move, note that recession does not mean 2008, and we can help give you a great real estate experience. Reach out to my team to find out what the buying or selling process would look like for you.