Pros and Cons of Buying a Home During a Recession
Though fears of a 2023 recession are causing some prospective homebuyers to hold off on home purchases, today’s economic landscape may actually provide a smoother path to homeownership for buyers in some rapidly cooling markets. If a recession materializes in the year ahead, experts anticipate even higher interest rates, a floor on pricing decreases, and potential income changes, but for priced out buyers, a sudden slowdown could also mean significant price drops and less competition, Forbes reports.
Home prices have already fallen 2.67% nationally between July and October 2022, and homebuying destinations like Morristown, TN, Muskegon, MI, and Pocatello, ID are all expected to see price drops of over 20% in the next year.
There are some potential cons of purchasing a home at the current moment, too. They include:
- High current mortgage interest rates
- A floor on price decreases
- Inventory is slim currently and during recessions generally
- Lack of job/income security, especially if you work in the tech sector