Whether you are current homeowners considering to sell your property in the nearest future or an investor with fix & flip strategy looking for a new property, you have to know how will your property’s market value be affected by the often-discussed upcoming recession. Explore the data provided by Redfin’s research and shape your strategies today!
Redfin did some research to see what homes that best retained their value through the last recession had in common. To identify the common features Redfin analyzed the characteristics of over 100,000 homes across over 80 metro areas that sold between July 2007 and September 2008, and sold again between January 2011 and March 2012. It chose these periods because the first coincides with the top of the housing market and the start of the “Great Recession” and the second is when home prices hit bottom and began to climb again.
Here are five characteristics common among homes that held their value best through the last recession:
• Single-family homes held their value better than townhomes and condos.
• Houses in more spread-out neighborhoods retained their value better than those in areas with denser housing.
• Homes with upwards of five or six bedrooms lost less of their value than those with fewer bedrooms.
• Homes with at least two stories kept their value better than single-story homes.
• Pre-war (those built before 1940) townhouses maintained their value better than newer homes.
Disclaimer: This story contains predictions and forecasts relating to home prices and other aspects of the housing market by several reputable sources. Those forward-looking views are the equivalent of an educated guess and should be treated as such. Rectrix Investments brings to the attention of its readers different viewpoints, but makes no claims or assertions about future housing conditions.
Sources:
https://www.redfin.com/blog/how-recession-proof-is-your-home/