Revealing the truth about the real estate recession with sales and values.
There has been a lot of talk lately about a real estate recession. What’s the truth about this? The reality is that there’s a recession in home sales, but not in home prices.
Real estate transactions are down anywhere from 20% to 50% across the country. Last year had an incredibly high number, but we’re seeing a decrease this year. Based on the number of transactions, we’re definitely in a real estate recession. However, this recession is unique compared to the others we’ve seen—inventory levels are still incredibly low and are down about 50%.
“Prices are still appreciating, but not at the same level we’ve seen in the past few months.”
As a result of being supply and demand driven, prices are still appreciating, just not at the same level that we’ve seen in the past. Last year we saw between 20% and 22% appreciation. This year, we’re seeing about 10% to 12%, and next year we’re predicting between 5% and 6%. Therefore, we still have a very healthy market.
It’s a great time to purchase a property, and you can gain additional appreciation. The reality is that we are not seeing a recession in terms of home prices, but there’s a recession in the number of transactions. If you have questions about the market or anything real estate related, feel free to reach out. Give me a call or send an email. I’m always happy to hear from you!