Talks of a potential recession are making headlines again—and naturally, buyers and homeowners are asking: “Will my home lose value?” “Will mortgage rates spike again?”
Let’s break down what typically happens in the housing market when the economy slows down—and why you may not need to panic.
A Recession Doesn’t Always Equal Falling Prices
Many people assume a recession means home prices will drop, like they did in 2008. But that downturn was unique—and driven by overbuilding, loose lending, and a foreclosure crisis.
In fact, home prices have actually increased in 4 of the last 6 recessions.

As you can see, only 1991 and 2008 saw declines, and 2008 was the real outlier at nearly -20%. Today’s market is very different—inventory is still tight, especially in Los Angeles County. Demand continues to outpace supply, and that’s keeping prices stable or rising in most markets.
So, if you're worried about a cra ...