Recession


Definition of "Recession"

Paul Avratin
Paul Avratin Keller Williams Realty

A lower phase of a business cycle in which the economy is deteriorating, coupled with a declining rate of business investment and consumer spending. Real Estate prices are typically depressed in recession, although the degree varies among regions.

Have a question or comment? We're here to help.

 
 
 
*** Your email address will remain confidential.
 
 

Search Real Estate Terms

 

Popular Real Estate Terms

Market Absorption Rate

The rate at which a market can absorb additional units of supply without causing market saturation and severe price distortions. For example, during a ...

Disinflation

A lessening in the inflation rate. This may occur during a recession when insufficient demand prevents sellers from passing on higher prices to prosp ...

Housing Starts

A measure of actual starts of houses, condominiums, and apartment construction. When an economy is going to take a downturn, the housing sector is the ...

Recession Of Contract

Cancellation of a contract such as when a real estate agreement is deemed illegal. ...

Economic Force

Power or strength of economic factors an variables influencing the real estate market. For example, real estate values may decline in times of recessi ...

Adverse Financial Selection

Process in which the policy-holder surrenders the policy when: cash proceeds can be invested elsewhere at a higher return than that being earned on t ...

Popular Real Estate FAQ

What Is A Lock In?

A lock in guarantees a certain interest rate for a certain period of time. ...

Why Should I Use A Real Estate Agent?

A real estate agent is more than just a \"sales person.\" They act on your behalf as your agent, providing you with advice and guidance and doing a j ...

What Is Accession?

The right of a property owner to have and enjoy all of the advantages of property ownership including air right, mineral rights, riparian rights, and ...

What Is An Inspection?

An inspection is a close and thorough examination of a house and property. A licensed individual usually does the inspection. ...

What Is A Proration?

A proration is the division of certain fees. If the sellers have paid the taxes six months in advance, for example, they may want a portion of that pa ...

What Is A Gated Community?

A gated community is a community of homes where you must pass through a security gate in order to enter the community. ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

10 Real Estate Tips for Homebuyers 4 Effective Ways to Market Real Estate to Millennials Home Prices - The Extra Costs Top Things to Budget for When Rehabbing a Flip House Seller’s Agent vs. Buyer’s Agent: the age-old question

FAQ

Do I need Life Insurance? What is a default? What do I need to know about Renters Insurance, and what does it cover? What is homeowners association (HOA)? What is flood insurance?