Amid growing chances of the U.S. plunging into a recession this year, housing experts have reassured American homeowners that the value of their properties will not crash even in the face of a major economic downturn.
Two consecutive quarters of negative real gross domestic product are often considered a recession, which is characterized by a widespread decline in economic activity.
While a recession could cool the U.S. housing market, which is in the midst of an affordability crunch, a new report by the real estate brokerage Redfin said it would not lead to a crash, as most homeowners sitting on low mortgages and high-value properties are unlikely to be forced to sell.
Why It Matters
Speaking with Fox News on Sunday, President Donald Trump did not rule out the possibility of a recession hitting the country this year. “I hate to predict things like that,” Trump said. “There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America.”
Fears of the U.S. entering a recession this year have grown in recent weeks, as stock markets tumbled following the president’s decision to impose sweeping tariffs on allied countries and uncertainty increases for businesses, consumers and investors.
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What To Know
“The housing market is relatively insulated from a downturn,” Redfin economist Chen…
