what is a housing recession

A housing recession is a state of economic downturn in the real estate and housing market, which typically occurs when home prices drop for an extended period. It is characterized by a decline in activity in the housing market, often characterized by a drop in building permits and housing starts. During a housing recession, there is usually a reduced level of real estate activity, as fewer people are willing or able to buy. This decreased demand means less competition for homes on the market, which in turn means sellers who are more open to lowering their prices. Home prices generally fall during recessions, with home values slipping in four out of the five major recessions between 1980 and 2008. However, home prices don't necessarily decline just because of a recession, and prices for homes may remain relatively high even as conditions in the housing market deteriorate during a housing recession. A housing recession doesn’t necessarily have to occur during an economic recession. There could be no recession in the economy, yet the housing market could experience a downturn separately.