Should A Recession Push Me Into Buying A New Home?

Should A Recession Push Me Into Buying A New Home?
05-28-08

There are many people who will jump at the chance at buying a new home during a recession. If you are one of these people you are probably well aware of the benefits that go along with buying at this time. But if you are like most buyers, you probably have no idea why a recession may be the perfect time to make a purchase. When it comes down to it, there are some reasons that you may want to look into doing this.

First and foremost, most people will tell you that you can save money on a piece of real estate during a recession. Is this true? In some cases, yes! There are times when a recession will bring price decreases of five percent or more. But at the same time, there is a chance that the market in your area will hold steady. So as you can imagine, a lot of the price that you pay will have to do with the market in which you are buying.

Another reason to consider buying a home during a recession is because the deals you can get on new construction. When a recession hits and new construction is underway, developers get put in a very awkward position. While they cannot turn back and stop building, they know that selling these homes can be hard during a recession. So what do they do, you may ask? Simply put, they look into ways that make buying a new home more appealing to consumers. For instance, they may heavily discount the asking price, or in some cases offer a large number of upgrades. This will allow you to buy a brand new home for much less than you would if the market was stable and flourishing.

As you can see, there are some good reasons for buying a new home during a recession. But remember, if you are not ready to buy you should step back and take your time. Sure, you could get a good deal at this time, but if you are not ready you could make things worse in the long run. Buying a new home during a recession can be advantageous, but only if you are 100 percent prepared to make a purchase.

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