It doesn’t matter if you’re someone who closely follows the economy or not, chances are you’ve heard whispers of an upcoming recession. Economic conditions are determined by a broad range of factors, so rather than explaining them each in-depth, let’s lean on the experts and what history tells us to see what could lie ahead. As Greg McBride, Chief Financial Analyst at   Bankrate ,  says : “Two-in-three economists are forecasting a recession in 2023 . . .” As talk about a potential recession grows, you may be wondering what a recession could mean for the housing market. Here’s a look at the historical data to show what happened in real estate during previous recessions to help prove why you shouldn’t be afraid of what a recession could mean for the housing markets today. A Recession Doesn’t Mean Falling Home Prices To show that home prices don’t fall every time there’s a recession, it helps to turn to historical data. As the graph below illustrates, looking at...

  During the pandemic, second homes became popular because of the rise in work-from-home flexibility. That’s because owning a second home, especially in the luxury market, allowed those homeowners to spend more time in their favorite places or with different home features. Keep in mind, a luxury home isn’t only defined by price. In a   recent article ,   Investopedia  shares additional factors that push a home into this category: location, such as a home on the water or in a desirable city, and features, the things that make the home itself feel luxurious. A recent report from the  Institute for Luxury Home Marketing  (ILHM)  explains  just how much remote work impacted the demand for second and luxury homes: “The unprecedented ten-fold increase towards remote work since the pandemic is a historic development that will continue to fuel second home demand for many years to come.” But what if you bought a second home that you no longer use? If you’r...

   There’s no doubt today’s  housing market   is very different than the frenzied one from the past couple of years. In the second half of 2022, there was a dramatic shift in real estate, and it caused many people to make comparisons to the 2008 housing crisis. While there may be a few similarities, when looking at key variables now compared to the last housing cycle, there are significant differences. In the latest Real Estate Forecast Summit, Lawrence Yun, Chief Economist at the  National Association of Realtors  (NAR), drew the comparisons below between today’s housing market and the previous cycle: Looking at the facts, it’s clear: today is very different than the housing market of 15 years ago. There’s Opportunity in Real Estate Today And in today’s market, with inventory rising and less competition from other buyers, there’s an opportunity right now. According to Davis Stevens, former Assistant Secretary of Housing: “So be adv...

 I f you’re thinking about  buying or selling   a home soon, you probably want to know what you can expect from the  housing markets   this year. In 2022, the market underwent a major shift as economic uncertainty and higher mortgage rates reduced buyer demand, slowed the pace of home sales, and moderated home prices. But what about  2023 ? An article from  HousingWire  offers this perspective: “The red-hot housing market of the past 2 ½ years was characterized by sub-three percent mortgage rates, fast-paced bidding wars and record-low inventory. But more recently, market conditions have done an about-face. . . . now is the opportunity for everyone to become re-educated about what a ‘typical’ housing market looks like.” This year, experts agree we may see the return of greater stability and predictability in the housing market if inflation continues to ease and mortgage rates stabilize. Here’s what they have to say. The 2023 forecas...

  A new year brings with it the opportunity for  a new experience . If that resonates with you because you’re considering making a move, you’re likely juggling a mix of excitement over your next home and a sense of attachment to your current one. A great way to ease some of those emotions and ensure you’re feeling confident in your decision is to keep these three best practices in mind. 1. Price Your Home Right The housing market shifted in 2022 as mortgage rates rose, buyer demand eased, and the number of homes for sale grew. As a seller, you’ll want to recognize things are different now and price your house appropriately based on where the market is today. Greg McBride, Chief Financial Analyst at  Bankrate , explains: “Price your home realistically. This isn’t the housing market of April or May, so buyer traffic will be substantially slower,  but appropriately priced homes are still selling quickly.” If you price your ho...

   If you’re a renter, you likely face an important decision every year: renew your current lease, start a new one, or buy a home. This year is no different. But before you dive too deeply into your options, it helps to understand the true costs of renting moving forward. In the past year, both current renters and new renters have seen their rent go up based on information from  realtor.com : “ Three out of four renters (74.2%) who have moved in the past 12 months  reported seeing their rent increase. The strain from recent rent hikes isn’t exclusive to renters who have recently moved.  Nearly two-thirds of renters (63.2%) who have lived in their current rental between 12 and 24 months , and likely renewed their lease, have also reported increases in their rent.” And if you look back at historical data, that shouldn’t come as surprise. That’s because, according to the  Census , rents have been rising fairly consistently since 1988 ( see graph below ): So, i...