The reality is that home prices do tend to fall during economic recessions, but the extent to which that happens can vary by local market.
In areas of high demand, homeowners may not see their property values go down at all.
Do home prices go down in a recession?
Recessions and falling home prices aren’t anything new. Housing prices took a 24% nosedive during the Great Depression of 1929. But all recessions since then have lasted a period of two years or less.
Will the housing market crash in 2020?
Most Americans are concerned that the real estate market is going to crash. A 2017 survey found that 57% agreed that there would be a “housing bubble and price correction” by 2020. 1 As a result, 83% of them believe it’s a good time to sell.
What does a recession mean for house prices?
A recession would put a dent in demand for housing, which has been high as the economy has thrived. The problem is that housing supply still remains low. But the real effect of a recession would be a moderate impact on housing demand, which alone will only go so far toward pushing home prices down.
Are housing prices going to drop?
In fact, real estate gurus predict that home prices will only rise by 2.8% in 2020. So, you’ll likely see home prices continue to creep up, but they probably won’t knock your socks off with rapid growth like we’ve seen in previous years. Real estate gurus predict that home prices will only rise by 2.8% in 2020.