Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_trust-2bcce80d03411a9e99a3cbcf4201c034562e18a3fc6eecd3fd22ecd5350c3aa5.avif)
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_1031_exchange-96bbcda3f8ad2d724c0ac759709c7e295979badd52e428240d6eaad5c8eff385.avif)
Real Estate Classifieds
Reviews & Feedback
Updated over 4 years ago on . Most recent reply
![Celia Moore's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1831451/1621515942-avatar-celia_moore.jpg?twic=v1/output=image/crop=3638x3638@0x5/cover=128x128&v=2)
Effects of a Recession
What are the characteristics of a recession?
We are seeing the characteristics now as the economy slows down... Real estate is not valued on anticipated rent or construction cost increases. Loans are hard to find. Cash is king. Unemployment rises as businesses reduce their work force in preparation for a reduction in demand for their goods or services. Salary increases are smaller. Tenants cannot pay rent increases easily. Businesses will not expand to fill vacant space. Buildings that cannot give an investor a decent return based upon current conditions will not sell. It is a buyer’s market.
What other effects come from a recession...? It is time to prepare today.
Most Popular Reply
Have followed with interest a lot of the discussion between people who feel we are on the verge of a crash, and those who feel this time is different. I'm in the latter crew.
One of the biggest things I follow when the market tanks, is the expansion of the money supply and consequent appreciation of everything related to precious metals.