Since the memory of the 2008 recession and housing crash is still fresh, it’s natural that prospective homebuyers and sellers worry when they hear that another recession could be on the way.
However, according to a recent Zillow survey of housing experts and economists, that worry may be overblown.
Since 1997, states have been in recession 1,039 times during a given month. 81 percent of those times, home price appreciation remained positive, which is roughly the same as during periods of economic growth. In other words, home prices are mostly immune to a recession, with the most recent recession being a very rare exception.
Since today’s market suffers from too little inventory rather than too much, there is much less risk than there was during the last recession. While recessions aren’t necessarily good for the housing market, there’s little reason to worry that the next one will cause another home price collapse.