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The Ups and Downs of Home Prices

The housing market is in good shape and ready to weather a downturn even if it does occur according to Ralph McLaughlin, Executive, Deputy Chief Economist, Office of the Chief Economist at CoreLogic.

In this video, McLaughlin explains that broad and deep troughs in housing prices are the exception rather than the rule during recessions. "If we look at the past five recessions we see that home prices typically weather downturns quite well," McLaughlin said.

He also pointed to housing inventory levels saying that the fact "we're at historically low inventory is important because it means we're in a very different supply environment compared to the massive run-up in inventory that appeared before the onset of the Great Recession. Today's low supply environment means that prices are unlikely to fall far, if at all, during the next recession.

Watch the video to learn how housing has fared during various recessions and recoveries:

About Author: Radhika Ojha

Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas.

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