What happens to house prices during a recession?

Asked by Hi, Virginia Fri Mar 14, 2008

Help the community by answering this question:

+ web reference
Web reference:

Answers

12
Raj, Home Buyer, Chesterbrook, PA
Tue Mar 18, 2008
Freefall, I am afraid. Nobody can tell you what would exactly happen. As mentioned below, look at Bear Stearns example and the read the article that profiles the top people who got burnt most. All those were professionals and highly successful too.

Thanks to globalization, we are in a unchartered territory. The US may recover fast or may doom. Who knows?
1 vote
Hi, , Virginia
Mon Mar 17, 2008
Notice how all the realtors do not want to answer this question.
By the way today 3/17/2008 Bear Stearns is now $2.
1 vote
John the Bru…, Home Buyer, Connecticut
Wed Mar 26, 2008
Dude - that gives your 3rd URL as the top result.

Present an argument, refute a point or go home.
0 votes
Perry Hender…, Agent, Austin, TX
Wed Mar 26, 2008
Also, search the local real estate guides on trulia... They are pretty helpful...
http://www.trulia.com/real_estate/Austin-Texas/
0 votes
Perry Hender…, Agent, Austin, TX
Wed Mar 26, 2008
"google this: "top cities for real estate prices going up" If that doesn't answer your question, then nothing I say will.

You can get local Austin data by going http://www.alamotitle.com. They track all of Austin statistics.
0 votes
John the Bru…, Home Buyer, Connecticut
Wed Mar 26, 2008
Perry, you didn’t address any of my points or answer my question. But, I’ll go ahead and address your “points” as if they were somehow connected to this argument in a meaningful manner.

1. http://www.hasentree.com/images/Top30Cities.pdf

Opinion piece using 2005 NAR data.


2. http://www.bankrate.com/brm/news/real-estate/reminiguide/app…

2006 data. Current Case-Shiller referenced here is January, 2008 data.


3. http://www.legalwiz.com/Public/Home/index.cfm?objectID=342

The headline of this article is, “Is the Real Estate “Bubble” Bursting?” It’s written by an attorney and doesn’t say much of anything relevant to this discussion.


Perry said, “I hope this helps but I can come back with a lot more data if you wish.”

More data? “More” implied that you presented something. You have yet to present one data point contrary to the Case-Shiller index. Please, look at the latest Case-Shiller data before you make yourself look any worse here. Of course, I’m assuming that you know what Case-Shiller is.
0 votes
Perry Hender…, Agent, Austin, TX
Wed Mar 26, 2008
1. http://www.hasentree.com/images/Top30Cities.pdf **** top 10 best & worst
2. http://www.bankrate.com/brm/news/real-estate/reminiguide/app… ***desite bubble talk, home values appreciating
3. http://www.legalwiz.com/Public/Home/index.cfm?objectID=342 *** a nice little article about regionalized markets and understanding about how they interact with this recession thing.

I hope this helps but I can come back with a lot more data if you wish.

Inflation... well, it seems that my business is picking up with non-nationals because they yen just got a 10% raise toward the dollar. That's ok but things are selling and people are buying....

If you want to help out. Start talking about the "you get deals buying foreclosure scam".

And how about a best answer from one of you two guys...
0 votes
John the Bru…, Home Buyer, Connecticut
Wed Mar 26, 2008
Perry said, “Since the great depression, recessionary positions have only shown up in localized markets.”

What exactly is a recessionary position?


Perry said, “For the 50 markets that are going down, there are 50 markets that go up. Austin prices are up 7%.“

Very optimistic, Perry. Sadly, the facts play a different tune. Here’s a quote regarding the latest Case-Shiller Index and it’s tracking of the 20 cities included in the index.

January Case-Shiller from Marketwatch: “Of the 20 cities, only Charlotte, N.C., has managed any gains in the past year, rising a meager 1.8%. For the fifth straight month, all 20 cities recorded lower prices compared with the previous month.

Home prices in 10 of the 20 cities have fallen at double-digit rates in the past year.”

Please provide a link to your data regarding Austin being up 7%.


Pretty said, “SO... A more precise question is.. what markets are showing prices that going down and what markets are going up?”

OK, here’s the answer to your question. Going down: all markets. Going up: none, at least in REAL terms (appreciation minus inflation.)

Good luck,
-John
0 votes
Perry Hender…, Agent, Austin, TX
Wed Mar 26, 2008
Since the great depression, recessionary positions have only shown up in localized markets. For the 50 markets that are going down, there are 50 markets that go up. Austin prices are up 7%.

SO... A more precise question is.. what markets are showing prices that going down and what markets are going up?
0 votes
Hi, , Virginia
Tue Mar 25, 2008
yes, this was my thinking
lets see what others think

anyways

good luck
0 votes
John the Bru…, Home Buyer, Connecticut
Tue Mar 25, 2008
They go down.

And the recessions brought on by asset bubble deflations tend to be protracted, historically speaking. So, plan accordingly.
0 votes
Bryan, Both Buyer And Seller, 90210
Mon Mar 24, 2008
I dont think any realtors are anwering because they might think you are a joke
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more