What Does A Recession Mean for the Housing Market?

So we’re officially in a recession. If you google housing predictions for 2020, you’ll see many of the forecasts, including the one done by the National Association of Realtors, expected little chance of a recession this year. Ha!

If you’re thinking about buying a home in the DC metro area, you’re probably hoping that means housing prices will fall.

If you’re thinking about selling a home in the DC metro area, you’re probably hoping housing prices won’t fall but thinking you might wait to sell until the economy is doing better.

Well, with the exception of 2008 when the recession was caused by the mortgage industry crisis, housing prices usually rise during a recession. Interest rates continue to be historically low, there are plenty of qualified buyers in our area, and inventory continues to be low.

So what should you do? Talk to your advisors about your personal situation and see what makes the most sense. It might not be the right time for you to buy or sell, but if your personal situation is secure then there’s no reason to let the news keep you from moving forward.