Think a Recession Will Help You Buy or Sell a Home? Think Again.
There’s been a lot of talk lately about a possible recession, and if you’re considering buying or selling a home, it’s natural to wonder if waiting might be the better move.
You’re not alone—according to a survey by John Burns Research and Consulting, nearly 7 out of 10 people are putting off their real estate plans due to economic uncertainty.
But here’s the twist: not everyone is waiting out of fear. Some buyers are waiting out of hope. A recent report from Realtor.com found that nearly 30% of surveyed buyers said a recession would actually make them more likely to purchase. Why? Because they expect interest rates to drop.
It’s true that in past recessions, mortgage rates have often come down as the Federal Reserve tries to boost the economy. And lower rates can make buying more affordable—especially for first-time buyers or those without large down payments.
But Here’s What Many People Miss
A lot of those hopeful buyers are also expecting home prices to fall. And while that happened during the 2008 crash, it hasn’t been the norm.
In fact, home prices rose in 4 of the last 6 recessions. The difference? In 2008, we had a housing bubble and an oversupply. Today, we still don’t have enough homes to meet buyer demand - even here in Savannah and across Georgia.
And while prices aren’t skyrocketing like they were during the pandemic, they’re still holding steady or ticking up in many areas. That’s why experts say hoping for a big price drop is probably wishful thinking.
As Robert Frick, an economist at Navy Federal Credit Union, put it:
“Hopes that an economic slowdown will depress housing prices are wishful thinking at this point.”
Bottom Line
If you’ve been sitting on the sidelines waiting for a recession to bring lower prices, it’s worth looking at what actually tends to happen. Yes, a dip in interest rates is possible. But a drop in prices? Not so much.
So don’t wait for a market shift that may never come. If you’re thinking about buying or selling a home in Savannah or anywhere nearby, let’s talk about your options and build a smart strategy based on what’s really happening—not just what the headlines say.
📩 Send me a message anytime. I’m here to help.