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Economy | Stanberry Stories Blog

Friday, September 2, 2022   /   by Jenny Carroll

Is a Recession Keeping You Off Market?

By John Case
Dripping Springs 
Cell: 925-382-9771
Cause and effect are often confusing when discussions of economics arise. Arguments pop up, primarily blaming an upcoming recession causing the number of property sales in recent times. The flip side of the argument is that the recession is causing a drop in real estate transactions. Neither of these arguments are true simply because slowdowns occur all of the time (economic increases also happen all of the time as well).
The real problem, if there is one, is that we like to hang labels on things which do not have solid definitions. The term ‘recession’ has this problem and causes arguments on whether there is one at all. The longest living and most used definition is as follows: ‘When the Gross Domestic Product (GDP) is 20% or more below the previous quarter for more than 2 consecutive quarters, the economy has entered into a recession’. This is all well and good but ignores some situations. The most ob. ...

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  buying power, economy, inflation, recession