Will the Recession Affect Housing Prices in Fairfield, CT?
Hi, everybody! It's Judy Mitchell with William Pitt Sotheby's Realty.
I have some information for you. I am just back from a real estate conference in California. It was a national conference I pretty much go to every year because I feel like it's really smart to invest in my business and learn about what's happening nationally so I can understand how that affects our real estate market locally right here in Fairfield.
I have some really interesting news. You may have been reading in the headlines that we have a recession coming. Oh my gosh! You see it everywhere in the headlines. Well, it's true. 47% of economists do believe that we have a recession coming but what does that mean to the housing prices? If you've been thinking about selling your house you have got to hear this. The most important thing that we need to understand is that in the last five recessions, only two recessions affected the housing prices. I think that everybody really thinks about the last recession which happened during the housing crisis in which the mortgage market drove housing prices down. And that's fresh in everybody's mind, but that may not be what this recession looks like. In fact, most economists believe that the recession coming in 2020 will look a lot like the recession from 2001. You may remember that one, it was post 9/11. In that recession, stocks dropped approximately 25% overall. But housing prices actually went up by 6.6% nationally. And, if this recession that's coming looks like that, then you're going to be in good shape at least when it comes to your real estate investments. In fact, many people pull some money out of the stock market because it's so volatile at that time. And they actually invest in real estate because over the years, history tells us that investing in real estate is a smart and stable investment even right here in Connecticut. So if you're a seller and you're thinking about selling, give it some thought. Here's why - right now we have historically low interest rates. You can get a mortgage under 4%. So if you're selling, that impacts you because buyers can actually afford to pay a little bit more for their house. You know when buyers are looking at houses, they're looking at their monthly payment and how much is it going to cost them to live in your house, say if it were on the market. As the interest rate goes up, their payments go up. So as interest rates go up, your housing price could come down and right now we have a good, stable, low-interest rate. So it really could not be a better time to put your house on the market. In Fairfield right now, we have a median sales price of $650,000 for a single-family home. That's a terrific price! With interest rates low, it really is a terrific time to sell.
If you'd like some more information about this, please give me a call at 203-293-0039 or email me at [email protected]. Hit the like button if you think that this is helpful to you. I'm a realtor here at Fairfield with William Pitt Sotheby's Realty. I'm ready to help you out and answer any questions you may have about the market. Thanks so much!