Why Recessions Don't Always Mean a Housing Crisis

Full Video Transript Below

[00:00:00] Alice Lema: Well, good morning, real estate fans. Welcome back to the podcast. Alice Lema here, broker John L. Scott in beautiful Southern Oregon. And we're talking today about the R word recession and how just because we may or may not have a recession. We just don't want you to worry about your house, okay.

[00:00:18] Recessions do not automatically equal a housing crisis. The R word is on everybody's mind. We're going to talk about it okay. Before we jump into that, give you a quick second to subscribe to the channel. Give us a, like you have some questions. Want to give a shout out to Brian and Laurie who came up here and visited this week and looked at some property was great to meet you. Got a lot of emails and a lot of phone calls this week from people who are listening to this information. Double-checking the data themselves and making great real estate decisions. So I'm so glad to hear all that feedback. Thank you so much, warms my heart.

[00:00:51] Okay now talk to you about the recession. And I'm not saying there is one, I'm also not saying there's going to be one. I'm just saying because of what happened in the stock market this week and yes, deep breath. Oh my gosh the stock market went down. It went down hard and it went down fast and everybody's just, their stomach hurts. Mine included. But I just want to say with all this talk about recession, I want to point to the data and I want to always go back to historic, what, what has happened. Historically appreciation still happens during recessions, except for, of course, the recession that had the housing crisis that was housing driven, credit driven. So that one, it's going to show up on this chart here that KCM put. Out and it's actually from core logic, which is another great housing website.

[00:01:43] The KCM published this core logic chart. And you can see that since the 1980s, we have anywhere from three to 6% appreciation during recessions. And the one, a little dippity do that we had in the nineties was minimal. So remember that if we're having a recession, yes, it's hard. Yes, it's icky, but it does not mean that we're having a housing crisis.

[00:02:08] We just need to kind of separate that in our brain. If we do end up with a housing crisis, then we will know it. We'll probably see it coming and we'll be talking about it. But right now, take a deep breath. It's probably going to be okay. It's just not going to be the double digit acceleration we've all been experiencing the last couple of years, but that wasn't sustainable anyway.

[00:02:29] Okay. I think we're just seeing things kind of normalize come off their highs. We still have more buyers and sellers. And a lot of markets we still have a labor shortage. So keep that in mind, let that give you some comfort that we should be okay during this time. And additionally, if you want to talk about what's going on with your real estate, you want to make some, some jumps into the investment world.

[00:02:52] Maybe you want to downsize. Maybe you want to up-size, you know, there's still more buyers and sellers, but not by as much as it was. Again, just trying to balance, just trying to normalize. I think that's where the market's going. And we're going to watch it every week. Cause that's what we do. We watch and we talk about it and we check the data.

[00:03:09] So with that in mind, feel free to reach out 541-301-7980 always here. Always have an opinion, right. So yeah, just let me know what you need with your real estate and we'll make it happen. Okay. Other than that, have a beautiful weekend. Talk to you next week. Bye.