Personal finance expert Suze Orman joined ‘Influencers with Andy Serwer’ and described the effect an economic recession could have on real estate prices.
ANDY SERWER: Housing prices have skyrocketed. If you're a home buyer, mortgages are going through the roof. What's your advice to buyers out there right now, Suze?
SUZE ORMAN: Well, I think the tables have turned a little. I don't think you're going to see homes go down, really, in value. The truth is, real estate always does pretty well during a recession if you think about it.
And we are used to 17%, 30% gains over the past two or three years on real estate. I think if you own real estate, you're not going to see it go down dramatically. Maybe you'll see it go up only 5% or 7% a year.
What will change, however, is the anxiety of buyers because now, they're going to have time. You're not going to see a house go on the market again, in my opinion, and get 30 offers over the asking price.