Could a Recession Cause Home Prices to Rise? Yes. This is How!

The impending recession and economic instability will likely cause home prices to rise according to Freddie Mac. New home building is slowing despite the US being 3.8M housing units below what is required. Although the impending recession is already cooling off the hot housing market, it is likely to make home prices rise even higher in the future.

As new home builders reduce the number of new homes being built, the housing crisis is made even worse, since home builders aren’t building enough houses. The result is that home prices are likely to rise again once the economy starts taking off again in 2023 or 2024 or interest rates start to fall back toward historic lows.

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