Which statement best describes why it is difficult to sell a home during a recession?

a.) Mortgage rates are high.

b.) Demand greatly decreases.

c.) Mortgages become unavailable.

d.) Housing prices increase.

Question

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24 February, 23:36

Which statement best describes why it is difficult to sell a home during a recession?

a.) Mortgage rates are high.

b.) Demand greatly decreases.

c.) Mortgages become unavailable.

d.) Housing prices increase.

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Answers (1)

Know the Answer?

Barbara Frey · Answer 1

Option b: Demand greatly decreases.

Explanation:

Due to the economic decline, trade and industrial activities suffer significantly. Consequently, people gets afraid to make big investments until the situation stabilizes. Hence, buyers only agree to buying houses if they are getting a very good price quote. In other words, unless the seller reduces the selling price by a significant margin, people are not willing to make the purchase, therefore the demand decreases.

Which statement best describes why it is difficult to sell a home during a recession?a.) Mortgage rates are high.b.) Demand greatly decreases.c.) Mortgages become unavailable.d.) Housing prices increase.

Which statement best describes why it is difficult to sell a home during a recession?

a.) Mortgage rates are high.

b.) Demand greatly decreases.

c.) Mortgages become unavailable.

d.) Housing prices increase.