Make no mistake, the state of the economy is what people are thinking about.
Globally, according to the Wall Street Journal, three-quarters of CEOs feel that we are in a recession, or will be in the next 12 to 18 months. This can definitely affect the real estate market and we are seeing the market shift as we speak. Homes aren't flying off the shelf anymore. We aren't seeing bidding wars. And as interest rates continue to increase and they're increasing steadily, we see that buyers have less buying power and are unsure of what to do. Let's look at what the real estate experts and advisors have to say.
Hi, I'm Stephanie Martenzi, super mom, super agent with Southland Properties and my goal is to help you navigate this ever changing market. Let's look at how mortgage rates have behaved over the last 40 years during times of recession. Well, there's no way to know how the market will behave now and what will happen. It's still good to reflect on how past recessions have historically affected the real estate market.
Over the last 40 years, you can see that mortgage rates have actually fallen during times of recession. An average of 1.8 percentage points from peak over the last five recessions. History also tells us that recessions do not automatically mean we are going to see a housing crisis. So as you consider your next real estate move, note that a recession does not mean 2008 is going to happen again.
Reach out to me to find out what the buying or selling process would look like for you. I'm Stephanie Martenzi, supermom, super agent with Southland Properties here to help you have a super fun, empowered and informed real estate experience by guiding you every step of the way. If you see me out in the community, make sure to say hi.
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