When the word “recession” starts popping up in headlines, many potential homebuyers understandably hit pause. Is it the right time to buy? What happens to home values if the economy slows down?
At Yes Lending, we believe that knowledge is power—especially when it comes to making one of life’s biggest financial decisions. And the truth is: the housing market has proven to be far more stable than most people think during economic downturns.
Home Values and Recessions: A Look Back
Let’s break a common myth. Many assume that home values drop whenever the economy dips. But in reality, that’s simply not the case.
If we look at the last seven U.S. recessions, home prices actually increased in six of them. The only major exception was the 2008 financial crisis, which was triggered by unsustainable lending practices and a housing bubble—conditions that no longer exist in today’s market.
In fact, what we see today is a housing market built on stronger foundations: qualified buyers, tighter lending standards, and low inventory. These are all factors that continue to support home values even in uncertain economic times.
Why Housing Holds Its Value
There are a few key reasons why the real estate market tends to remain strong—even during recessions:
- Limited Inventory: There simply aren’t enough homes for sale to meet the demand. This ongoing shortage puts upward pressure on home values.
- Stronger Lending Standards: After the 2008 crisis, lending laws changed significantly. Today’s buyers are highly qualified, which helps keep the market stable.
- Lower Interest Rates: The Fed often lowers interest rates during recessions, making borrowing more affordable. That can actually increase homebuying activity.
- Housing Is a Necessity: Unlike other assets, people always need a place to live. That constant demand adds a layer of protection for homeowners and buyers.
What This Means for You as a Buyer
If you’ve been thinking about buying a home, but feel uncertain because of economic headlines—take a step back and look at the bigger picture.
A recession doesn’t necessarily mean falling home prices. In fact, it might create a smart buying opportunity—especially if interest rates drop. And unlike renting, buying a home gives you the chance to build long-term equity while locking in a stable monthly payment.
It’s also worth remembering: trying to “time the market” perfectly is nearly impossible. The best time to buy a home is when you can comfortably afford it, and when it fits your personal and financial goals.
Yes Lending Is Here to Help
At Yes Lending, we work with buyers in every type of market. Our team is here to walk you through the numbers, explore your financing options, and help you make a confident decision—whether you’re buying your first home or upgrading to your next.
Recessions come and go. But owning a home remains one of the most powerful ways to build wealth and stability for your future.
Have questions or want to explore your options? Contact us today—we’d be honored to guide you on your homebuying journey.
