I cover some things to bring clarity in how the housing market can get affected. I’ve noticed some misleading information involving the next recession and housing prices. I’ve heard many realtors across the U.S. describe this with very little context to support their hypothesis....that the next recession will NOT impact housing prices and if anything prices will go up. * (By the way, NOBODY KNOWS WHEN THE NEXT RECESSION WILL OCCUR! There are indicators to help determine such as the inverted yield curve, the VIX index, etc. but still no one really knows.)
Earlier this summer many realtors shared on social media, an interesting chart showing how home prices were affected in the past recessions and how the recession prior 2008 actually showed home prices grow.
That pretty much gave some of them reason to imply that home prices will likely go up or not be affected in the next recession. Granted, the 2008 recession was tied heavily to housing through subprime mortgages and mortgage securities but still this isn’t enough grounds to assume the next recession won’t affect housing.
The chart they used was the NATIONAL home price index, which is not a good index to use because it can be heavily skewed. That is why it's much better to be precise and USE the numbers in a SPECIFIC market! Or AT LEAST use the 20-City Composite Home Price Index IF the market you're looking at is in a large city. Thus, make certain to hire a realtor that understands the numbers and trends. My information is below:
email: andrew@andrewvargas.com
website:
cell: 424-253-4096 or 714-371-3692
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