Is 2008 Happening Again

Dated: 04/18/2019

Views: 102

Homebuyers Shouldn’t Worry About 2008 All Over Again

Last week, realtor.com released a survey of active home shoppers (those who plan to purchase their next home in 1 year or less). The survey asked their opinion on an impending recession and its possible impact on the housing market.

Two major takeaways from the survey:

  • 42% believe a recession will occur this year or next (another 16% said 2021)

  • 59% believe the housing market would fare the same or worse than it did in 2008

Why all the talk about a recession recently?

Over the last year, four separate surveys have been taken asking when we can expect the next recession to occur:

  1. The Pulsenomics Survey of Market Analysts

  2. The Wall Street Journal Survey of Economists

  3. The Duke University Survey of American CFOs

  4. The National Association of Business Economics

70% of all respondents to the four surveys believe that a recession will occur in 2019 or 2020 with an additional 18% saying 2021.

However, we must realize that a recession does not mean we will experience another housing crash. According to the dictionary definition, a recession is:

“A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.”

During the last recession, a dramatic fall in home values helped cause it.

However, according to research done by CoreLogic, home values weren’t negatively impacted as they were in 2008 during the previous four recessions:

Homebuyers Shouldn’t Worry About 2008 All Over Again | MyKCM

During the four recessions prior to 2008, home values depreciated only once (at a level that was less than 2%). The other three times home values appreciated, twice well above the historic norm of 3.6%.

Bottom Line

If there is an economic slowdown in our near future, there is no need for fear to set in. Most experts agree with Ralph McLaughlin, CoreLogic’s Deputy Chief Economist, who recently explained that there’s no reason to panic right now, even if we may be headed for a recession.

“We’re seeing a cooling of the housing market, but nothing that indicates a crash.”

Blog author image

Josh Twitchell

I have a background in construction and a BA in Marketing. I have done just about every part of building a house. As a buyer, I can help you recognize what to look for in your dream home and things ....

Want to Advertise on this Site?

Latest Blog Posts

Great Time To Look At Your Credit Report FOR Free

Does everyone know you can look at your Credit Report?Normally its Once a year from each site so I recommend you pull one 3x a year usually spring summer and fall and check for things that should

Read More

2020 Home Appreciation Or Depreciation

Will Home Values Appreciate or Depreciate in 2020?With the housing market staggered to some degree by the health crisis the country is currently facing, some potential purchasers are questioning

Read More

6 Things To Get Out Of Debt And Buy A Home

6 things to get out DEBT and buy a HOME!!!1. Study your spending Habits2. Eliminate your biggest debt first3. Lower your interest rates4. Estabish an emergency fund5. stop adding to your debt6. cut

Read More

How We Can Help You SEE A Home From Your Home

How Technology is Helping Buyers Navigate the Home Search Process  Some Highlights: A recent realtor.com survey revealed that buyers are still considering moving forward with

Read More