There’s a question looming in a lot of people’s minds these days: “Is a recession coming? What can we do about it?”
A key thing to remember is that a recession isn’t always a bad thing. A recession is defined as two consecutive quarters of negative growth, and it’s a necessary part of the market cycle. Markets expand and contract over time. During the last five recessions of our country, we’ve seen periods of expansion that lasted several quarters prior to each one.
Many people ask, “What happens to home values during a recession?”
Interestingly enough, out of the last five recessions, three of those recessions saw increases in home values. That shows that a recession doesn’t always mean that your home will lose value.
Another thing to remember is that we could be going through a recession in some segments of the national market, but not in others. Real estate is always hyper-local—we could have a slowdown in one area, but other areas could stay strong. The recession rule of thumb is that if an area is experiencing growth in terms of jobs, wages, and population, then that area will typically remain economically healthy. And fortunately, we’ve had a great local economy here in Utah along the Wasatch Front.
If you have questions about the recession, your market area, or about real estate in general, please reach out to your Colemere Realty Associate. They’d be happy to answer your questions. If you’re thinking of making real estate plans in the next few years, it’s never too early to start a discussion with us.