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: