what happens to house prices during a recession

It would be interesting to see the effects in the 'mortgage belt' suburbs. Employment is a lagging indicator so unemployment won't kick in until about 6 months after the recession starts. I don't expect a crash or anything though. At worst property will drop 10%. All the people waiting for the property bubble to crash by 50% so they can pick up bargains are dreaming.
 
I was around when the last recession happened, shortage of stock - vendors hanging on in the hope prices would rise, frustrated buyers :(
 
List of Australian Recessions:
Start Finish
1 Apr 1961 30 Sep 1961
1 Oct 1971 31 Mar 1972
1 Jan 1974 30 Jun 1974
1 Jul 1975 31 Dec 1975
1 Jul 1977 31 Dec 1977
1 Oct 1981 30 Jun 1983
1 Oct 1990 30 Jun 1991

Interesting to note how little time a recession runs for - approx 6 months only (apart from the 1981-1983 one).

I'll do some extra research when I get some time, to see how property prices were affected.

so there hasn't been a recession in 24 years. I think most people have forgotten what a recession is like. I'm too young to have experienced it in my working life like a lot of people in the sub 50 age group.

A recession is not just a blip in a graph when it happens, there can be big consequences.
 
In my opinion, we are pretty much already in one.

Not officially and by the technical measurements, of course.

And yet; r/e is booming in a lot of areas around Aus.

In a true recession, I predict the r/e will simply go flat.

There will always be the small percent of distressed sales - more at the higher end than the lower during the bad times, and the higher end are more extreme as a general rule.

This is the commonly held technical definition
http://www.investopedia.com/terms/r/recession.asp

The rba will be cutting rates aggressively to spur the economy. They are partly measured on limiting damage caused by recessions. It's not purely reactive.
 
List of Australian Recessions:
Start Finish
1 Apr 1961 30 Sep 1961
1 Oct 1971 31 Mar 1972
1 Jan 1974 30 Jun 1974
1 Jul 1975 31 Dec 1975
1 Jul 1977 31 Dec 1977
1 Oct 1981 30 Jun 1983
1 Oct 1990 30 Jun 1991

Well, that list above seems to be random, no one can actually predict the future.

What about the GFC period on 2008 - 2009 when property prices went down ?

Yeah Erica, the last 2 recessions that I can recall, property prices went UP.

How is that possible ? house price rising up while in the recession period ?
 
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