The impulse is to say yes, buying a house during a recession is a great idea because a recession creates a buyer’s market where prices are very low. Add to that the possibility that the Fed is going to lower the interest rate for new mortgages to 4.5 and it seems like the smartest thing to do.
There are some things to consider:
- Do you have something to sell before you can buy a new house? As just mentioned, it’s a buyer’s market, so it’s very challenging to sell real estate right now - though it can be done (and it is being done!)
- Don’t be swayed by the low, low prices. Make sure that the house is really what you want and that you aren’t just hypnotized by the price tag.
- Similarly, make sure the house is in the neighborhood of choice. A great house is really only as great as its surrounding community.
- Always get a new property thoroughly checked by an inspector and make sure your realtor is well versed in the legalize surrounding your property. In other words, make sure the low price reflects the economy, not the property and its issues.
