How a Possible Recession Could Impact Home Prices

By Jason Penrose

Jason has been licensed since 1999, and is currently one of the top 20 agents in Arizona for homes sold.

The looming possibility of a recession has left many people confused and apprehensive about the real estate market. Today, we’re here to shed light on this complex issue and provide some expert guidance. Let’s navigate these uncertain waters together and find clarity amidst the speculation.

What Does a Recession Mean for Real Estate? As we hear more about a potential recession, the stock market is becoming more volatile, unemployment numbers are rising, and layoffs are increasing. But what does this mean for the real estate market? The answer largely depends on how interest rates move in the coming months.

The Role of Interest Rates. If interest rates continue to decline, we might see more buyers entering the market to take advantage of lower borrowing costs. This increased demand could help stabilize home prices as inventory is bought up.

The Risk of Rising Inventory. On the other hand, if unemployment rises significantly, we may see more homes coming onto the market from sellers who can no longer afford their mortgages. These “motivated sellers” could lead to an increase in inventory, which might cause home prices to drop.

The trajectory toward a recession is still uncertain, and its impact on the real estate market remains to be seen. If you’re concerned about how this might affect your home or buying plans, please contact me at (602) 738-9943. I’m here to help you navigate these uncertain times.