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Should I Buy a House During a Recession

Should I Buy a House During a Recession?

Many analysts and economists are signaling that we may be headed for a recession. This can cause panic in the majority as inflation is reaching an all-time high.

Many fear the housing market is going to drop and the bubble burst. So many are prompted to ask the question: should I buy a home during the recession?

Here are the answers to your burning questions about real estate and the recession:

How Recessions Affect Real Estate

Although recessions are not directly correlated with real estate, the 2008 recession may state the opposite. Home values plummeted, resulting in millions of homeowners being upside down in their real estate.

Many homeowners were forced to foreclose on their homes as they owed more than what the homes were worth. However, this provided ample opportunity for home buyers to grab homes for cheap.

Reasons You SHOULD Buy a House During a Recession

There are many pros to purchasing a new home during an economic recession.

Lower prices

When demand for homes decreases, so do the housing prices. If potential home buyers have enough savings and income, now is a great time to buy a home.

Mortgage rates additionally are lower during a recession. Lower home prices and lower interest rates are a match made in heaven for people wanting to buy a home.

More concessions and negotiations

When there is lesser demand, more concessions and negotiations can be made including:

  • Seller paying closing costs
  • Paying under the asking price
  • Add-ons like furniture
  • And more

Better Selection

When a recession hits, the economy slows. That means that more real estate will be available whether they be short sales, foreclosures, or homeowners desperately wanting out of their mortgage.

More properties will be available to choose from versus the hot real estate market from 2020 through today. Prices are still up, mortgages continue to rise, and the competition is steep.

Lesser competition

During a recession, more people are going to be hesitant in moving forward with the home-buying process. This makes for lesser competition in the home-buying game.

However, recessions can make for a more relaxed home-buying experience. Lesser offers mean reduced stress and anxiety wondering if you will be the lucky one that home sellers will choose to purchase their home.

Bottom Line

If you are in the market to buy a home but afraid of the looming recession, do not worry. Now—and during a recession—is a great time to purchase a house.

Low prices, increased inventory, additional concessions, and more negotiation power make it the optimal time for home buyers. You have more of a chance of landing the home of your dreams during a recession than not!

If you are in the real estate market looking to purchase a home in Columbia, South Carolina, contact us today. We are here to guide you through the home-buying process in the most efficient, painless, and cost-effective way possible. Call us today!

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