Recession and DMV home prices

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How is the anticipated recession next year going to impact the home prices in this area?

I know the answer.

I know the answer, thus, I’ve adjusted my financial position to return maximum monetary gains to exploit the anticipated “impact”.

Why should I tell you? I did the work. I know the answer.

I make no apologies. This is simply a case of finance and capitalism.

Sure, Jan.

No one knows the “answer” that’s right for everyone, but also no one “knows” there’s going to be a recession. There are a lot of factors currently propping up home prices other than the overall economy. They could stay level, they could decline slowly, or they could plunge or continue to increase (I find the latter two less likely, but we don’t really know.)

Also if you’re “returning maximum monetary gains” you’re also subject to risk, which means if you’re wrong you lose big time.

OP just do the normal. Save your money, watch prices/interest rates, know what you can afford, and when you find something you like that fits within your budget, go for it.

NP - your sarcasm meter is broken.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How is the anticipated recession next year going to impact the home prices in this area?

Not much directly. If the recession causes Trump to be elected, then I suppose a bunch of people leaving the Biden WH will list their houses, so maybe inventory gets better, which puts some downward pressure on prices. It's also possible that the fed cuts interest rates, which helps affordability.

and you really think a few homes for WH appointees on sale will have an impact? Literally a drop in the ocean.

+1 Change of administration generally doesn't affect the DMV RE market.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How is the anticipated recession next year going to impact the home prices in this area?

I’ve been hearing about this recession for at least 2 years. Is it actually coming next year?

+1 I'll admit that I was wrong a couple years ago when I was oh so sure that prices would come crashing down. Sorry to all the people on this board who I told to wait until 2022 or 2023 to buy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How is the anticipated recession next year going to impact the home prices in this area?

Not much directly. If the recession causes Trump to be elected, then I suppose a bunch of people leaving the Biden WH will list their houses, so maybe inventory gets better, which puts some downward pressure on prices. It's also possible that the fed cuts interest rates, which helps affordability.

and you really think a few homes for WH appointees on sale will have an impact? Literally a drop in the ocean.

+1 Change of administration generally doesn't affect the DMV RE market.

Not to mention, new people come to town to replace those who might leave. The things that might make home values change is if they move an agency out of DC altogether, which is unlikely, and if there are economic conditions that cause the private sector to lay off a lot of workers. But DC is relatively insulated from the latter event because the fed usually doesn't lay off many during recessions, and sometimes even hires more to deal with the fallout.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How is the anticipated recession next year going to impact the home prices in this area?

I know the answer.

I know the answer, thus, I’ve adjusted my financial position to return maximum monetary gains to exploit the anticipated “impact”.

Why should I tell you? I did the work. I know the answer.

I make no apologies. This is simply a case of finance and capitalism.

Sure, Jan.

No one knows the “answer” that’s right for everyone, but also no one “knows” there’s going to be a recession. There are a lot of factors currently propping up home prices other than the overall economy. They could stay level, they could decline slowly, or they could plunge or continue to increase (I find the latter two less likely, but we don’t really know.)

Also if you’re “returning maximum monetary gains” you’re also subject to risk, which means if you’re wrong you lose big time.

OP just do the normal. Save your money, watch prices/interest rates, know what you can afford, and when you find something you like that fits within your budget, go for it.

Damn you!, Poe's Law. Attempted humor foiled again.

[Anonymous]

Impossible to predict, especially with interest rates in a state of rapid change. If inflation gets under control, the fed could lower the interest rate and spur demand from people looking to move/buy, causing prices to rise. You can't count on a recession coming along (people have been calling for a recession for two years now), but even if it does, it's not necessarily going to lead to more affordable homes.

[Anonymous]

Anonymous wrote:People have been predicting a recession for a long time.

And people here have been predicting DC area home prices to crater for as long as DCUM has existed. We're still waiting.

[Anonymous]

Economists have accurately predicted 15 of the past 4 recessions.

[Anonymous]

I think a recession probably is coming. We still haven't felt the effects yet of all of the rate increases and we still have at least one more to go. People are tapped out after so long of higher prices.

That said, house prices are not dropping in the DC area. They may flatline (which we have already seen), but not drop.

[Anonymous]

A recession will come sometime in the next 10 years. Home prices will increase before it, and fall some amount higher than where we are now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How is the anticipated recession next year going to impact the home prices in this area?

I’ve been hearing about this recession for at least 2 years. Is it actually coming next year?

+1 I'll admit that I was wrong a couple years ago when I was oh so sure that prices would come crashing down. Sorry to all the people on this board who I told to wait until 2022 or 2023 to buy.

The last few years should be a lesson to all to buy when you want a house instead of trying to time the market. I actually worried when we bought in 2020 that we’d just purchased at peak…have to laugh about that now.

[Anonymous]

Wages have increased, dollar has lost value because of too much money printing.

Going out to eat sit down at a decent place costs 100+ for a family. Look at the price of gas.

Houses will not go down in this area. There is a lot of money floating around.

[Anonymous]

Money isn’t worth anything. Energy, Food, Smartphone and Shelter are the only things of value. Unfortunately for shelter people have figured out they can squat for free and absolutely will do so in a rough financial environment. It makes real estate the weak link in value compared to the other necessities.

[Anonymous]

The recession would have to be a very big one. Because there were no meaningful drop in real estate prices in our neighborhood during 2008 financial crisis.

[Anonymous]

Anonymous wrote:I think a recession probably is coming. We still haven't felt the effects yet of all of the rate increases and we still have at least one more to go. People are tapped out after so long of higher prices.

That said, house prices are not dropping in the DC area. They may flatline (which we have already seen), but not drop.

How can you be so certain?