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The Business
Cycle and Buying a Home
Recession
and Expansion
There are times when the economy
is brisk and everyone feels confident about his or her prospects for
the future. As a result, they spend money. People eat out more, buy new
cars, and….
…they buy new homes.
Then, for one reason or another,
the economy slows down. Companies lay off employees and consumers are
more careful about where they spend money, perhaps saving more than
usual. As a result, the economy decelerates even further. If it slows
enough, we have a recession.
During such a time, fewer
people are buying homes. Even so, some homeowners find themselves in a
situation where they must sell. Families grow beyond the capacity of
the home, employees get relocated, and some may even find themselves
unable to make their mortgage payment - perhaps because of a layoff in
the family.
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