Recession And Existing Homes For Sale

Recession And Existing Homes For Sale
05-28-08

Even though new construction homes have become very popular over the last 10 or so years, many buyers are still interested in existing property. If this sounds like you, you need to make sure what a recession can do to the buying process. Believe it or not, if you are attempting to buy an existing home during a recession the process will be much different than if you were to get involved with new construction.

First and foremost, keep in mind that a recession will usually work out in the buyers favor. The reason for this is that during these times home prices usually take a downward turn. This means that you should be able to save anywhere from three to five percent on the property that you are interested in. But of course, this is based largely on where you are shopping, as well as the type of home that you are looking to buy.

Additionally, you should also keep in mind that the market may slow down immensely during a recession. What does this mean, exactly? For the most part, a slow down means that there are not going to be nearly as many homes on the market. After all, homeowners are interested in getting the highest possible price for their property, and selling during a recession may not be the best idea as far as this is concerned.

All of the reasons above effect existing homes sales during a recession. But just as they can negatively affect existing property sales, this works out in the opposite was when it comes to new construction. Since construction companies have already built the homes, they cannot afford to sit back while nobody lives in them. This results in new homes being sold at a fraction of their usual cost.

Overall, a recession will greatly change the way that you buy an existing home. Do yourself a favor, and consider the pros and cons of buying during a recession. You should be able to make a decision on what to do after you weigh all your options.

Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000