Are recessions good for home values?
Are recessions good for home values?
Well yes they are in fact the last 5 recessions 3 of them prices have gone up.
1980 went up 6.1% 1981 when up 3.5% 1991 went down 1.9% 2001 the .com bubble prices went up 6.6% and 2008 the depression property values went down 19.7%.
The main reason why prices fell in 1991 and 2008 was not the recession but the fraud 1991 you had the savings and loan crisis caused by fraudulent loans and appraisals google the Keating Five 2008 you have the massive amounts of loan fraud that we all know about in fact prices tend to go up during a recession because the fed lowers the rate and people pile in to real estate.
Las Vegas in the FHA range right now we're seeing investors piling in because of the super low rates and they cant find a return on their money anywhere. 1st time home buyers are afraid of the recession that may or may not come but the investors are taking advantage of these super low rates and buying real estate
Steve Hawks
BS Finance Real Estate & Law
Platinum Real Estate Professionals
NV#42057