If we go into a recession, would house prices go down? what else would happen? stock prices down or up?

Answer 1

Housing prices will go down many places whether or not there is a recession, they already are. Usually the stock market gos down before the recession actually arrives. The inflation rate and interest rates decline (which increase stock prices) but prices and wages do not go down, but real wages prices may decline. For most people the major effect is job insecurity and a increase in unemployment. Recessions are particular difficult for young people entering the work force, because few companies are hiring workers without experience, but people who have jobs are not effected very much.

Answer 2

in a recession stock prices from leisure companies certainly decrease as people are spending less money on leisure goods. house prices theoretically should go down though in the uk some areas are more desirable places to live than others the desirable place remain desirable. so this balances the prices out. house prices are based on people willing to pay and ability to pay but this has had little effect on house prices so far.

Answer 3

a recession means stock prices would fall. the housing market would stagger, more houses would go up for sale with not enough buyers. Housing prices would therefore fall due to a glut in supply without matching demand. The fed would probably start to lower interest rates which would be a good thing for current bond prices. Unemployment would rise, factory production would slow, and consumer confidence and retail sales would slow. Automotive and discretionary sales would slow as well.

Answer 4

Most if not all prices go down during a recession.

Answer 5

House prices would fall (but before or after the stock market fall I don't know that... ) but there are a lot of variable you to consider before making a desicion... as long as America can keep printing money from tin air and world keeps buying it NO RECESSION you need to worry about:) largest economy if you fall we all fall so you US. residents don't need to worry:P

Answer 6

in a reccession generally everything goes down in value as demand drops.

so there isn't a sfe haven for your money.. unless you already shifted it around say 6momnths..2 years ago.

property, especailly UK property may well tank.. its stupidly overvalued, un justifiably so.. and has oinly been rising so much in part due tot he availability of easy cheap mortgages, and or mortgages on silly mulitples of earnigns, well theyve both gone.

some (many) people bought second properties speculatively as investments... wait untill the first established sign of the pricves falling and watch all those come on the market.....

Answer 7

There is no recession looming. The left wing liberal loonies in Congress and in the main stream media are promoting a recession to try to use it to get votes in the next election.