How to Navigate a Real Estate Recession as a Seller


The real estate market ebbs and flows in response to various economic factors. Currently, the U.S. housing market is undergoing a rebalancing. Coming off a some might call it ‘crazy’ market during the pandemic, there are bound to be adjustments that need to be made. Look no further for our top tips on how to navigate a real estate recession as a seller.

As a seller, know that you can feel confident in navigating any real estate market with the help of a trusted agent. Find an agent today to guide you through your big sale.

Where we are in 2022?

There is no one that is immune to raging inflation happening in all categories, while simultaneous interest rate hikes. Does this mean we are headed into a real estate market recession? The answer is, unfortunately…maybe? What does that mean for you as a homeowner, and in particular, you as a seller of real estate?

Many real estate professionals state they don’t see this potential recession to be as catastrophic as the 2008 housing recession. In 2008 homeowners were lacking equity which led to high-risk lending and mass foreclosure. This simply isn’t the current economic environment we are seeing in 2022.

What does this mean for sellers?

You may be curious if a pending recession means you should jump and sell your real estate investments quickly before things take a deep dive. The answer is again…maybe? It depends on what kind of real estate investments you have.

If you have multiple investments with low equity in each one, it may be a good idea to sell off some of that real estate. On the flip side, if you own property with lots of healthy equity, it’s perfectly safe and okay to keep that investment.

Another factor that can contribute to your decision to sell now or weather the storm is considering when you will need the equity out of your property. If you’re nearing retirement, it might be a good idea to consider selling. On the flip side, if you’re young, investing with aggression and high risk will likely pay off.

In the 2022 real estate market, there has been a trend of sellers unloading property in fear of a pending recession. This is creating an inventory boom (something the market has seriously been lacking in recent years), and in turn, driving home values down. Values going down can seem like a bad thing, but it actually is a necessary correction the real estate space has needed.

What to do to survive the recession?

There are things you can do to weather the recession and ensure you remain financially healthy. Check out our top tips for making it through tough economic times:

  • Review your budget and ensure you’re living within that budget
  • During your budget review, find areas you can cut back on expenses and make the changes
  • Work your hardest at eliminating high-interest debt
  • Increase your savings account to have a healthy backup of funds
  • Continue investing in the stock market and elsewhere
  • Try finding a “side hustle” for an additional stream of income

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