The Truth of Our Recession in 2022
Anyone currently monitoring the real estate market has heard the news about us being in a recession, inflation, and the high mortgage interest rates, so what does this mean for you?
Frankly, a lot of this is unknown. During a recession, and in the beginning stages especially, job loss is a major factor that can contribute to changes in the housing market. Right now, the U.S. unemployment rate is still low – around 3.6%. We also know that home values tend to lower during a recession. This provides new opportunities for buyers. Current renters that are able to leave their leases and enter into home ownership will see gains in equity once the recession is over. Recessions typically last less than one year, so for most home owners, it is a temporary loss for a long-term financial gain. Historically, we see the same results from stock market investors. The Dow Jones is currently down 6% from this time last year, but we know that over the last three years it has been up nearly 100%, and has always trended upwards after a recession.
The big picture is that recessions can be times of loss and tough decisions. However, they can also be a time of opportunity for those capable of making the leap. Real Estate is one of the most popular methods of growing wealth, and with home prices on the decline, now could be the right time for you to buy an investment home, upsize, capitalize on current equity, or even hold tight. We are always available for a consultation to help decide what is best for you!