Recessions and Real Estate

The media has been sounding the alarms on a potential recession this year, which has many questioning if it’s a good time to purchase a home. When people hear about recessions, most remember the sharp decline in home prices during the housing bubble and 2009 recession. Many often mistakenly believe that the recession caused the housing bubble, but it was quite the opposite – the housing bubble led the U.S. into a recession.

Looking back at the other eight recessions since 1960, home prices significantly increased or at least remained stable each time during and after the recession. One of the reasons this occurs is because interest rates significantly fall during recessionary periods.

During the housing bubble, risky, non-verified mortgages were commonplace. There was a glut of supply in the real estate market along with much lower buyer demand. Today’s housing market is much stronger – there are 3 million fewer homes for sale compared to the housing bubble, and 14 million more households. Strong demand and tight supply should continue to be supportive of home prices.

Buyer’s Agent: A Key Piece of the Puzzle

Buyer’s Agent: A Key Piece of the Puzzle

Purchasing a home is one of the most significant financial decisions you'll ever make, and it's not a process you should navigate alone. At My City Lending, we understand the intricacies of mortgage loans and the importance of having a knowledgeable ally by your side....

Navigating the Blossoming Housing Market

Navigating the Blossoming Housing Market

As you contemplate a move in the near future, you may be curious about the availability of homes, the direction of prices and mortgage rates, and the best strategies for engaging with the current market. Here's a synthesis of insights from industry experts on what to...

4 Essential Strategies for Submitting Your Best Home Offer

4 Essential Strategies for Submitting Your Best Home Offer

Considering a home purchase soon? It's crucial to be aware that the current housing market is highly competitive in numerous regions, primarily due to a persistently low inventory of available homes. This situation often results in multiple-offer scenarios. As we...

Want to go mobile?

Download the app for even more features like secure mobile document scanning and payment calculation.

Calculate payments easily
Securely scan & upload docs from your phone
Message your loan officer instantly
Get updates as you go