Owning a Single Family House instead of renting one provides a huge amount of savings for every family. On the other hand, commercial real estate gives greater impact to those waiting to finally land a job whether it may be in a small retail store or in an industrial related company. So generally, RE is everybody's point of revenue.
Real Estate Industry is non recession proof, for instance, RE contruction requires a great deal of labor/work force. Therefore, we can simplify it as no property sales = no work force and no work force = high percentage of unemployment.
The clear outcome of poor sales may end up to the depreciation of home value whether it's listed in the market or not. In effect, when Home Equity Loan value decrease, homeowners tend to cut down their expenses and the domino effect on the less consumer spending will slowly drop the economy. The outcome will further lead to poor employment rate, poor income and expense reduction. The way I see it, unless high interest rates are reduced, it will be the major cause of recession.