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Recessions & Real Estate, What's the Big Worry About?

  Recessions and Real Estate, What's the Big Worry all About?
Have you ever wondered how previous recessions have affected real estate prices?  This is a common question I get asked by agents and consumers anytime the word recession is brought up.  The term, “recession” can scare anyone who has been through one and were caused financial strain as a result. Therefore, the word recession often brings up fear rather than the true and accurate picture of what happens during a recession. The reality of what happens to real estate prices during a recession is a great example of that.
The key to managing that fear is to look at historic numbers. While it is true that Gross Domestic Product (GDP) goes down during a recession and the economy is affected, that is not necessarily true of real estate prices. Below are statistics regarding GDP and how real estate prices were affected in past recessions:
 By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings nearly three decades of experience in the real estate industry. With agent/broker coaching, expertise in branding, lead generation, strategic marketing, business analysis, new home project planning, product ... more

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