A STUDY OF FINANCIAL OF REAL ESTATE AGENT DURING

RECESSION
CHAPTER 1(1.1): The Impact of recession on housing and Real Estate

A recession can slow the hosing market and may be a bad time to sell.
If you buy, however, you may be in for a treat
Quick bites
@ Recession occur when our economy slows down considerably for an extended
amount of time.
@ Housing prices can drop as fewer people are prone to buying in down times.
@ It may not be a great time to sell for many of us, but for some, it could make a
sense.
Buying a house is one of the biggest financial moves you can make.
Much of your wealth gets tied up in your home. And you have to diligently make
mortgage payments month after month for many years, or risk losing everything.
Unfortunately, a recession can threaten your financial security and home.
The truth is that many homeowners weather recessions with no problem. Recessions are
a cyclical part of the economy and can be expected. However, recessions do have significant and
sometimes dire consequences for the housing market. Here’s what you should know about recessions
and their impact on housing and real estate.

What’s a recession ?
A recession is a significant decline in economic activity that lasts more
than a few months, according to the nonprofit research organization National Bureau
of Economic Research (NBER). Signs of slowdown come in gross domestic product
(GDP, or the value of goods and services produced in a country), income,
employment, industrial production and wholesale-retail sales. The NBER is
responsible for officially marking the official beginning and end of recessions.
Recession can happen for various reasons, including major shocks to the
economy. For instance, the dotcom bubble of the 90s eventually burst, resulting in a
recession during the early 2000s.

The most recent recession happened thanks to the coronavirus pandemic, which
caused businesses and economies to shut down around the world.
 It was also the shortest recession to date.
How does a recession impact real estate?
Recession usually have a major impact on the housing market and real estate.
When the economy is doing poorly, it may mean that fewer people have the money to
A STUDY OF FINANCIAL OF REAL ESTATE AGENT DURING
RECESSION
buy homes. With supply higher than demand, property may stay on the market much
longer and home values fall to encourage sales. Overall, the market can stagnate. If
people are unable to pay their loans, the rate of mortgage delinquencies and
foreclosures can also increase.
To harness a recession , the Federal Reserve, the U.S. central bank that is
responsible for keeping the country’s economy on track and setting monetary policy,
steps in.
Should us by home during recession?
Generally speaking, if you can afford to buy a home during a recession, you
should,” says Ralph DiBugnara, president of home qualified a real estate guide. With
homes in less demand, prices should come down. Additionally, because the fed is
probably going to get cheaper mortgaes