Here is a chart of how the housing markets performed during the last five recessions. Notice that it’s generally immune to recession, save for the last one. “Why was it so bad in ’07-’09?”, you may ask yourself. The reason is actually pretty simple. The housing market CAUSED the recession. With Adjusted Ram Mortgages (ARM), questionable lending practices and a really low bar to qualify, as well as other predatory loans practices, everyone was buying a home, even those that couldn’t originally afford the home that they eventually bought, without any increase in income. THAT particular market was built on pillars of sand, with water flowing underneath.
Today, talks of recession in media, and all other negative news, are what gets eyes watching, ears listening, and hearts pounding. NEGATIVITY SELLS!! Plus, the information is usually three to six months old by the time you hear about it.
So relax, calm down, and enjoy the market, because we’re just getting back to a normal one.