What happens to property prices in a recession

What happens to property prices in a recession30 Jun 2020

One of the most common questions at the moment, is what is going to happen to property prices as a result of the current pandemic.
While we cant predict the future, it is interesting to examine past world events and dig down into what the numbers Actually were...the key word being actual rather than what makes a good news story to sell newspapers.

Here is an excerpt from a recent article from OneRoof by Ashley Church. (link to full story below):

"The number of properties bought at market peak - between 2005 and 2007 - and then sold during this period for a loss was low – just 6043 – and the median value of those losses was just $22,000. At the same time, 65 percent of home sellers who bought at market peak and sold over the same period made a median profit of $45,000 on the sale of their property.

But here’s where it gets really interesting. During the GFC itself – generally accepted as the 22 months between July 2007 and March 2009 – there were actually more sales than during the period following the GFC. In fact, 306,631 houses were sold in New Zealand over this time. Of the properties bought at market peak, just 3461 properties sold during July 2007 and March 2009 for a loss – with a median average loss, across these properties, of $24,000. And get this – 78 percent of properties bought during market peak and resold over this time made a median profit of $52,000!"

link to full article: https://bit.ly/38fbNDb