Is a real estate recession coming?
Researchers at Goldman Sachs recently released a paper titled “The Housing Downturn: Further to Fall.” The investment bank forecasts that U.S. housing GDP will drop by 8.9% in 2022 and another 9.2% in 2023.
Will the next recession affect real estate?
2022 is projected to have similar affordability issues and UpNest’s experts say you can expect to see bidding wars this year if you look to buy. However, any recession will affect the housing market, since many buyers don’t want to make such a huge financial commitment when the economy is on shaky grounds.
How does recession affect real estate market?
Recessions usually mean the housing market will take a downturn, but sometimes a down housing market can be a precursor to a recession. The market can become more favorable for homebuyers during a recession but it can be harder to qualify for a mortgage.