What are the risks of investing in commercial real estate during an economic downturn?

Jul 3, 2023 ... 1. HOUSE PRICES MIGHT DECREASE · 2. THE GAP BETWEEN PROPERTY PRICES CAN ALSO REDUCE · 3. THE RISK OF NOT BEING ABLE TO PAY YOUR MORTGAGE INCREASES. Jan 17, 2023 ... The housing market and real estate are usually significantly impacted by recessions. Fewer people may have the means to purchase homes while the ... Jul 8, 2024 ... Some people thought I was crazy when I argued house prices would fall 40%+ in some areas, but that is what happened. I also called the ... Recession arrived, home prices sank about 11%, sales activity plunged and the market stayed basically flat for 4 to 5 years. Still, even after the decline ... Nov 14, 2022 ... When this happens, major banks tend to follow suit by lowering mortgage rates. ... Will a recession drive down house prices? Typically, recessions ... We examine a panel of quarterly state level data on house prices, mortgage debt and employment along with a measure of banking distress. Then exploiting both ... Mar 19, 2025 ... Neither of those scenarios is similar to what home buyers could face today if a recession happened. The housing market has been facing two years ... Apr 8, 2025 ... ... recession, property analysts and economists say. ANZ economist ... “The big risk for property will be what happens to unemployment and also what ... Apr 1, 2025 ... So, a recession means mortgage rates could decline based on the data. While that would help with affordability, don't expect the return of a 3% ... Apr 15, 2020 ... The 2008 recession was more severe for the nation than it was for Austin in terms of prices, and perhaps the opposite is true for the 2001 one.