Our country has experienced almost a decade of economic growth. The Wall Street Journal recently surveyed economists to find out when the next recession will occur. Here’s what the survey revealed:

 

“The economic expansion that began in mid-2009 and already ranks as the second-longest in American history most likely will end in 2020 as the Federal Reserve raises interest rates to cool off an overheating economy, according to forecasters surveyed.”

That timing is consistent with a recent Pulsenomics survey sponsored by Zillow Research:

“Experts largely expect the next recession to begin in 2020.”

Let's combine both surveys on a graph and see how they stack up...

Will Home Prices Fall During The Next Recession?

 

With the housing crash of 2008 still fresh in our minds, it’s natural to have concerns about where home prices are headed. 

Here’s what Mark Fleming, Chief Economist at First American, had to say:

 

“If a recession is to occur, it is unlikely to be caused by housing-related activity, and therefore the housing sector should be one of the leading sources to come out of the recession.”

 

According to the Pulsenomics survey, the three most likely causes of the next recession are:

  1. Monetary policy
  2. Trade policy
  3. A stock market correction

 

Ready For Some Great News?

Those same experts also projected that home values would continue to appreciate each year between 2019 and 2022. That’s four more years of home appreciation across the U.S. How awesome is that?!

 

Home values actually appreciated during 5 of the last 6 recessions

 

 

Bottom Line:

A recession is likely on the horizon in the next few years, but the housing market will weather the storm.