Home Buying Advice - Recession and Expansion

Recession and Expansion

When the economy is good people feel more confident about their financial situation and are more likely to splash out on large ticket items like a car or a new home.

On the other hand if the economy is slow they are more cautious, they become concerned about losing their job and are less likely to spend on big ticket items and are more likely to save their money for a rainy day. Even in this market homes still have to be sold and bought, teenagers are growing up and want a place of their own, people are relocating to the area, families become too big for their current house. People also move away from the area or have to sell their home because they have lost their job.

While the housing market does not completely follow the economic cycle, the current state of the economy does greatly impact local market conditions.