The recession that began in 2008 had a significant effect on the housing market, and many people wonder if houses got cheaper following the economic downturn. The answer is yes, but it took quite a while before the market showed signs of recovery. The process of recovery took about 3.5 years, during which many homeowners faced declining property values. Let’s take a closer look at how the housing market was affected by the 2008 recession.
Buyers who purchased their homes in 2008, 2009, or 2010 saw their prices drop significantly prior to the beginning of the recovery in 2011.
Single-family homes declined by 19% following the recession, which had a significant impact on those who owned or were looking to buy a home during this time.
Although condos were not hit as hard as single-family homes, they were still devalued by 12%.
It’s worth noting that the housing market is highly localized, and some areas were hit harder than others.
Overall, the 2008 recession had a significant impact on the housing market, and property values did decrease in many areas. However, it took some time for the market to recover fully, making it a challenging time for homeowners and buyers alike.