Home Values in the Midst of Recession

NextHome’s CEO James Dwiggins and Chief Strategy Officer Keith Robinson break down one of the biggest concerns on Americans’ minds right now – what’s going to happen to home values?

The real answer is “it’s too soon to tell” with real specificity.
Who Knows

But there are some real learnings we can get from taking a closer look at past recessions and how home values were impacted then. The two of them will also share their (many) thoughts on how the pandemic-led economic situation we’re in will compare and contrast, and dive into why this isn’t like 2008.

 

The biggest thing to take from this is that we are having a ‘Health Crisis’, Not a ‘Housing Crisis’!

A number of factors to take into consideration – the current mortgage rates remain some of the lowest rates in history!

2020 April Mortgage Rates

Overall, the US new home construction starts & applications have declined in March from the previous month by the highest number since 1984.

2020 April Housing starts

This, along with an overall fall in new listings coming on the market, leads to the inventory levels remaining low.

2020 April Inventory

Although we are seeing a temporary fall in demand, with this low supply of homes, and low mortgage rates, the potential for home values to remain unaffected, or even to see an increase, is high!

Want to find out what is happening to home values in your neighborhood, contact us!