7 Warning Signs of Recession That Will Scare You

Decreasing home prices and sales

When home prices and values start falling, many consumers respond by cutting spending because they believe their wealth has decreased. The cutting back can get more extreme if homeowners find themselves in negative equity — when they owe more on a home than what it’s worth. And, per usual, less consumer spending can lead to a recession. The Great Recession is probably most identified with crashing home prices and values.