History Shows The Housing Market Always Recovers

 

Looking at the history of the housing market, a clear trend emerges - it consistently bounces back. While downturns or slow markets can be unsettling, they're typically followed by periods of strong growth. This cyclical nature is a fundamental characteristic of the real estate market. The image below from Keeping Current Matters illustrates this point perfectly with recent forecasts.

What the Data Is Telling Us 📈

The bar chart compares existing home sales from 2024 to projections for 2025 and 2026. After a slight dip from 4,067,000 sales in 2024 to a projected 4,010,000 in 2025, the market is expected to rebound significantly. The forecast for 2026 shows a remarkable increase to an average of 4,576,490 sales. This data from reputable sources like Fannie Mae, MBA, and NAR supports the notion that the market is primed for recovery.  

Why This Matters for You 🏡

For homeowners, this data reinforces the long-term value of their investment. The ebb and flow of the market means that patience is key. Housing price statistics in California show that since the 1940’s, home appreciation has averaged about 10% per year over decades. (More information to follow on home appreciation from the 1940’s in next week’s edition of Into The Weekend.) For prospective buyers, it suggests that now may be a good time to consider entering the market, or moving to your next home, before the projected upswing in prices and competition. As the saying goes, "don't wait to buy real estate, buy real estate and wait." The forecast for 2026 indicates that the market is set to recover and even exceed recent sales numbers, providing a strong signal of future growth and stability.

 

In California, and in San Diego, history tells us that as long as homeowners hold for a 10-year period, we normally win...and win big through the power of home appreciation.  Thinking back to the first home we bought and the price we paid – we should have purchased the whole neighborhood!  Believe it or not, history is likely to repeat itself and we’ll be saying the same thing looking back at home prices today from a time into the future!  Don't wait for the recovery—get ahead of it. Whether you're thinking of selling to capitalize on future growth or buying before the market fully heats up, now is the time to start.

 

Call us today to schedule a no-obligation consultation and discuss your real estate goals.

Gloria Shepard
Gloria Shepard CA DRE # 01040966

+1(619) 889-8498

16909 Via de Santa Fe, Rancho Santa Fe, CA, 92067-9519, USA

Gloria Shepard

Gloria, a San Diego native, has spent her life exploring its charming coastal towns and villages, from La Jolla, Del Mar, and Solana Beach to Rancho Santa Fe, Fairbanks Ranch, and beyond. As a resident of Santaluz since 2003, she possesses an intrinsic understanding of this spectacular community and its surroundings. With a career in real estate that began in 1989, Gloria has amassed extensive experience across various market segments, including Residential, Luxury Residential, and Real Estate Asset Protection and Recovery.

From 1989 to 2006, Gloria distinguished herself as one of the nation’s top Listing Managers, representing the interests of the United States Department of Housing and Urban Development in the marketing and sale of over 18,000 properties across five counties in Southern California. Her vast knowledge and real estate acumen are brought to every transaction, ensuring her clients receive the highest level of service and expertise.

Gloria's clients consistently praise her ability to listen empathetically and understand their real estate goals, wants, and needs. Her keen attention to important details and expert negotiation skills further enhances her reputation as a trusted advisor in the real estate industry. Gloria collaborates seamlessly with attorneys, tax consultants, financial advisors, senior title officers, senior escrow officers, and lending representatives, creating a coalition of expertise that benefits her clients immensely.