Because of the economy at the moment the price of houses has become very high meaning most first time buyers cant afford a house (or need a massive mortgage that they cant afford, though banks might stupidly lend it to them). Anyway people not being able to afford houses is a bit of a problem because people generally need somewhere to live.
So in a recession houses prices will fall because:
- People will be made redundant or have falling incomes meaning their houses will be repossessed. This will cause the banks to sell them off cheaper and therefore the overall price of houses will fall.
- People will be less confident in the economy so are less willing to borrow large amount of money, especially if they think they are likely to lose their job
- People may try to free up some of the money they have in their house by selling it.
- If people expect house prices to fall they will be less willing to invest large amount of their money in their house and will therefore be willing to pay less for a given house causing its value to fall.
- There are many many more that i haven’t listed.But if you think you have an important one I’ve left out please add it in the comments.
Falling house prices mean that first time buyers can might actually be able to afford a house. Now i know some people will claim wages will fall etc so ftb’s still wont be able to afford a house but fingers crossed people still need to eat so tesco will still employ shelve stackers, etc. Also in a recession their will be less investment, this will mean that efficency falls so they will need to pay more people to do the same work than before (especcially unskilled work that is most liley to be being done by the people im talking about)
Anyway i no some people will argue with me so please leave your comments(whether you agree or not) 
:)
