|
I haven't been in real estate very long. In fact I've never been in real estate, but generally speaking, something like this doesn't directly effect the housing market, it's the loss of jobs, investments and eroded consumer confidence that creates and atmosphere were people don't want the change associated with a new primary residence and the payment that comes with it. Especially in the case of trading up.
In a recession, several economic factors converge to create an economic scenario where people who have to sell may need to cut price to get their property to move. If you're losing 20% or 30% of your portfolio it doesn't exactly inspire confidence to go close on a new house.
|