Buying a House During a Recession: What To Know

As we all continue to watch the numbers and demand for housing get higher and higher, we all are left wondering - when will it pop? The moment when all the growth comes tumbling down and prices fall drastically. When that happens here’s what you need to know about buying or selling your home.

1. Lower Prices

During a recession, there are usually fewer buyers, so houses stay on the market longer. This makes sellers more likely to lower their listing prices so that their home is easier to sell. We can also help with this stress by buying your home for you so you don’t have to think about it all the time.

2. Banks Become Less Generous

Whenever the economy hits into a recession banks become a lot less likely to give out large loans. They are also less likely to approve mortgages, out of fear that they will have to foreclose on a home.

3. Mortgage Rates Drop

The Federal Reserve generally lowers the interest rate during a recession, to stimulate the economy. This means that the banks lowering their rates, too, including mortgage rates. With a lower mortgage rate, you will end up paying less for your home over the years. Helping you and your family save money along the way.

4. Difficulty Selling

If you need to sell an existing home before you can buy a new one, this might cause you some trouble. But we are here to help if that is the case. It all depends on your area and the demand around you.