Why Waiting for a Recession May Not Be the Best Move in Real Estate

According to Keeping Current Matters, recession fears are once again making headlines—and it’s causing many potential buyers and sellers to hit pause. Recent research shows nearly 7 out of 10 people are holding off on making a move due to economic uncertainty. But here's the surprising twist: not everyone is waiting out of fear. Some are waiting in hope.

There’s a growing belief that if the economy slows down, mortgage rates could dip, making homes more affordable. And historically, that’s not entirely off base. During the last six U.S. recessions, mortgage rates fell each time as the Federal Reserve took action to stimulate the economy. For many buyers, that creates the impression that a downturn might actually be the perfect time to jump into the market.

But here’s what’s often overlooked: while mortgage rates may fall during a recession, home prices typically don’t. In fact, home prices increased in four of the last six recessions. The only time we saw a significant price correction was during the 2008 housing crisis—an anomaly fueled by very different circumstances than we see today.

Today’s market remains supported by a fundamental supply shortage. Even as inventory levels have grown modestly in some areas, there still aren’t enough homes to meet demand. That’s keeping upward pressure on prices, and in most markets, values are still rising or holding firm—just at a slower, healthier pace.

So, what does this mean if you’ve been sitting on the sidelines, waiting for prices to dip? It may be time to rethink that strategy. While a slight rate reduction could help with affordability, waiting for a price drop that may never come could mean missing out altogether—or paying more later when demand surges again.

Bottom Line:
If you’re waiting for a recession to make your move, the facts tell a different story than the headlines. Mortgage rates may soften, but home prices aren’t likely to. The Indigo Skye Group is here to keep you informed with the latest market insights—so you can make confident, well-timed decisions. Whether you're buying or selling, now is the time to plan smart and stay ahead of the curve.




source: keepingcurrentmatters.com