• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Live the Flagstaff Life

Live the Flagstaff Life

Flagstaff Lifestyle and Real Estate

  • Home
  • Search Homes For Sale
  • Guides
    • Buyer’s Guide
    • Relocation Guide
    • Request a Seller’s Guide
  • Blog
  • Vacation Rental Management
  • About Us
    • An Interview With Katannya
    • Contact
    • Privacy Policy
    • Terms and Conditions
You are here: Home / Real Estate / The One Thing Every Homeowner Needs To Know About a Recession

The One Thing Every Homeowner Needs To Know About a Recession

May 19, 2022 by Katannya Hartwell Leave a Comment

Share
Share
Pin
Email
More

A recession does not equal a housing crisis. That’s the one thing that every homeowner today needs to know. Everywhere you look, experts are warning we could be heading toward a recession, and if true, an economic slowdown doesn’t mean homes will lose value.

The National Bureau of Economic Research (NBER) defines a recession this way:

“A recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.”

To help show that home prices don’t fall every time there’s a recession, take a look at the historical data. There have been six recessions in this country over the past four decades. As the graph below shows, looking at the recessions going all the way back to the 1980s, home prices appreciated four times and depreciated only two times. So, historically, there’s proof that when the economy slows down, it doesn’t mean home values will fall or depreciate.

The One Thing Every Homeowner Needs To Know About a Recession | Simplifying The Market

The first occasion on the graph when home values depreciated was in the early 1990s when home prices dropped by less than 2%. It happened again during the housing crisis in 2008 when home values declined by almost 20%. Most people vividly remember the housing crisis in 2008 and think if we were to fall into a recession that we’d repeat what happened then. But this housing market isn’t a bubble that’s about to burst. The fundamentals are very different today than they were in 2008. So, we shouldn’t assume we’re heading down the same path.

Bottom Line

We’re not in a recession in this country, but if one is coming, it doesn’t mean homes will lose value. History proves a recession doesn’t equal a housing crisis.

Filed Under: Real Estate Tagged With: Flagstaff Az Realtor, Flagstaff Realtor, Real Estate in Flagstaff Arizona, Real Estate in Flagstaff Az

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

sellers see what I do differently

buyers search homes in flagstaff!
  • Ponderosa Trails
  • Flagstaff Golf Communities

Copyright © 2025 · by Katannya Hartwell, Realtor® · Log in

eXp Realty | Privacy Policy | Terms and Conditions

exp logo, fair housing, multiple listing service, relator logo