While we are very likely to head into a recession (defined as when the GDP is negative for two quarters), that doesn’t mean it will lead to a housing crisis. In fact, in the last five recessions America has gone through, home values only dropped in two of them, one of those being 2008. In 2008, the entire recession and drops were due to the housing market being built on unstable grounds. Luckily, we, as a country learned from those issues in 2008 and we don’t have those same vulnerabilities.
So, with homes values likely to maintain (and even grow slowly), people will still be buying and selling homes, but it will be more for necessity (think death, divorce, debt, having a baby, getting married) and less for fun (outgrowing a home, wanting to try out investing, moving school districts).
As people continue to buy and sell, they will be more likely to have emotional difficulties during the process, as we face unknown futures as a nation. If you need to buy or sell during this time, get an experienced professional to help keep people level-headed and rational on both sides, as the one of the biggest potential strains in real estate will be people reacting to the unknown emotionally throughout the buying and selling process.
If you have any questions about where the market is right now and how it affects you, feel free to reach out!