Talks of Recession Surfacing with Government Shutdown | The Source Weekly - Bend, Oregon
Support local and vocal journalism! Become a Source Insider to help get news and culture to Central Oregon.
Search
Settings
Pin It
Favorite

Talks of Recession Surfacing with Government Shutdown 

Worries expressed about housing market

This past week, numerous headlines have emerged about prolonged government shutdowns leading to a recession. With the 2008 recession still fresh in everyone's mind, the word "recession" makes people think of another housing recession. While some prominent economists have talked about an economic recession, housing has not been a concern because strict lending regulations were put in place to prevent the same situation.

Most industry writers feel that because we have high demand for housing, things could slow down a bit, but the high demand and inventory shortages will continue to make prices go up. A study of home price behavior during the last five economic recessions showed that home prices declined in 1990 and 2008. The decline in 1990 was less than 1 percent and during the other three recessions in 1980, 1981-82, and 2001, home prices actually went up.

While affordability continues to be an issue, overall, the market appears stable—and based on recent historical data on recessions, it's likely that our next recession may have only a minimal effect, if any, on housing price declines. At the time of this writing, Freddie Mac reported our mortgage rates were at the lowest rate in nine months at 4.45 percent, despite the rise in interest rates by the Federal Reserve—so there definitely is good news countering the fears of bad news.


About The Author

Nick Nayne, Principal Broker

Principal Broker at The Broker Network Realty in Bend, OR. Over 12 years experience in Real Estate working with buyers, sellers and investment properties.
Pin It
Favorite

Comments

Subscribe to this thread:

Add a comment

Readers also liked…

  • Pricing Your Home to Sell

    Pricing Your Home to Sell

    How to get it right in a challenging market
    • Jun 8, 2022
Today | Mon | Tue | Wed | Thu | Fri | Sat

Schilling's 2022 Holiday Makers Market - Schilling's Garden Market

Sun., Dec. 4, 10 a.m.-5 p.m.
Submitting an event is free and easy.

Newsletter Signup

Get Central Oregon daily news
directly in your inbox

Get Social

Latest in Take Me Home

  • Rates, Supply and Demand

    • Nov 30, 2022
    The expectation for 2023: We'll experience a return to normalcy in the housing market More »
  • Ready To Buy A Home Together?

    • Nov 23, 2022
    Top five conversations you should have with your partner before considering buying a home More »
  • November Mailbag

    • Nov 16, 2022
    Answering your real estate questions More »
  • More »

More by Nick Nayne, Principal Broker

Want to advertise with us?

For info on print and digital advertising, >> Click Here

© 2022 LAY IT OUT INC | 704 NW GEORGIA AVE, BEND, OREGON 97703  |   Privacy Policy

Website powered by Foundation