{"id":2676,"date":"2022-05-19T13:42:54","date_gmt":"2022-05-19T13:42:54","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=2676"},"modified":"2022-05-19T13:42:54","modified_gmt":"2022-05-19T13:42:54","slug":"one-thing-every-homeowner-needs-know-recession","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/one-thing-every-homeowner-needs-know-recession\/","title":{"rendered":"The One Thing Every Homeowner Needs To Know About a Recession"},"content":{"rendered":"
\"\"

The One Thing Every Homeowner Needs To Know About a Recession<\/p><\/div>\n

A recession does not equal a housing crisis. That\u2019s the one thing that every homeowner today needs to know. Everywhere you look, experts are warning we could be heading toward a recession, and if true, an economic slowdown doesn\u2019t mean homes will lose value.<\/p>\n

The National Bureau of Economic Research<\/em>\u00a0(NBER) defines<\/a> a recession this way:<\/p>\n

\u201cA recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.\u201d <\/em><\/p><\/blockquote>\n

To help show that home prices don\u2019t fall every time there\u2019s a recession, take a look at the historical data. There have been six recessions in this country over the past four decades. As the graph below shows, looking at the recessions going all the way back to the 1980s, home prices appreciated four times and depreciated only two times. So, historically, there\u2019s proof that when the economy slows down, it doesn\u2019t mean home values will fall or depreciate.<\/p>\n

\"Graph\"

Recession Doesn’t Equal a Housing Crisis<\/p><\/div>\n

The first occasion on the graph when home values depreciated was in the early 1990s when home prices dropped by less than 2%. It happened again during the housing crisis in 2008 when home values declined by almost 20%. Most people vividly remember the housing crisis in 2008 and think if we were to fall into a recession that we\u2019d repeat what happened then. But this <\/strong>housing market isn\u2019t a bubble<\/strong><\/a> that\u2019s about to burst<\/strong>. The fundamentals are very different today than they were in 2008. So, we shouldn\u2019t assume we\u2019re heading down the same path.<\/p>\n

Bottom Line<\/strong><\/h3>\n

We\u2019re not in a recession in this country, but if one is coming, it doesn\u2019t mean homes will lose value. History proves a recession doesn\u2019t equal a housing crisis.<\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. The author does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. The author will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.<\/em><\/h5>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Everywhere you look, experts are warning we could be heading toward a recession, and if true, an economic slowdown doesn\u2019t mean homes will lose value. Finish Reading The One Thing Every Homeowner Needs To Know About a Recession<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[371,59,38,15,164,10,18,16,57,52,67,32,203,9,49,295,205,134,42,436,136,440,63,20,320,372,48,500,94,47,19],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/2676"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=2676"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/2676\/revisions"}],"predecessor-version":[{"id":2679,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/2676\/revisions\/2679"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=2676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=2676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=2676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}