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Will recession spark a housing market crash?

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The housing market is showing signs of a slowdown after booming during the pandemic.

The booming housing market has been showing signs of a slowdown, hinting that the combination of skyrocketing home prices, record-high mortgage rates and severe mismatch between demand and supply that has dominated the past 12 months might be finally coming to a halt—or is at least giving potential home buyers a break.

As the U.S. reported two consecutive quarters of declining gross domestic product on Thursday —what many consider to be the sign that the country has entered a recession— there are talks of the housing market spectacularly crashing like it did during the Great Recession of 2007-2009, the most severe recession in the U.S. since the Great Depression of the 1930s.

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