Will housing market downturn lead to a'modest recession' in 2023?

It was the first housing price drop in 11 years, according to National Association of Realtors data. Home sales also declined by 3.4% between March 2023 and April 2023. Experts at Fannie Mae’s Economic and Strategic Research (ESR) Group believe that the housing market downturn could lead to a “modest recession” overall in the second half of 2023.

Will the housing market be a buffer against a deep recession?

While Fannie Mae’s forecast model predicts that the U.S. housing market will help to drag the economy into recession, Fannie Mae economists also believe that the U.S. housing market will be a buffer against a deep recession.

How did the housing market change during the 2001 recession?

The average buyer at the start of the 2001 recession gained 48.59% over the next five years and 27.18% over ten (they caught the tail end of the 2008 recession). Buyers who got in just before the housing market collapse of 2008 were down -15.96% after five years but after ten were back in the green and up 7.73%.

Will the housing market end in 2022?

The U.S. entered into its first housing downturn of the post–Great Financial Crisis era. And the worst still awaits. On Tuesday, researchers at Goldman Sachs released a paper titled “The Housing Downturn: Further to Fall.” The investment bank now forecasts that activity in the U.S. housing market will end 2022 down across the board.