With the many discussions of a recession on the way, it is easy to ask yourself the question of whether it is safe to buy a home in today’s economy. This can be an even more trying decision if you are making your first home purchase and have never walked down this path before.
If you are looking to buy a home in today’s economy, there is definitely much to gain.
Being on the buyer side of the market in a recession you can benefit, provided your economic situation is sound. To begin, homes tend to run a bit cheaper, and mortgage interest rates are not yet rising as anticipated. So, you will save money at the initial purchase and all throughout your payments.
This can be a great benefit if you are a first-time home buyer. Various FHA benefits out there are booming with assistance and protection offered to those entering the market for their first homes. Earlier this year, various federal programs came into play to help make the purchase of first homes affordable and easier. Additionally, reductions have been put in place over the past few months on interest rates and mortgage insurance premiums for those in FHA mortgage programs. For these reasons, it is a good thing to shop around for your first home at this time.
Even more, there seem to be trends in the market that work for the benefit of buyers throughout the purchasing process. Some recent activity shows that certain occasions show sellers bowing to the requests of buyers in various aspects and the values of homes are actually increasing again. Even more, you can evaluate your individual situation based on your location, income, credit report, financial status, and other needs in order to determine the importance of jumping into the housing market at this time.
No Perfect Time To Buy A Home
One key point that is often mentioned by various financial advisors is that there is no “perfect” time to purchase a home. You may want to consider the fact that if you already have a home with a good interest rate and you don’t need a change at this time, then maybe it’s not time to go through the challenges that go with finding a new home.
However, if you are moving for a new job, starting a family, or addressing another life change that initiates the need for your first home or a new home, then it may be a good time to search through the best points available in the housing markets today. This can make it essential to you whether interest rates are high, home supply is low, or there needs to be more money saved in the bank. If you have a need, these issues don’t doesn’t matter. So, depending on your needs and financial situation, the time to buy a home is now.
No matter the overall financial concerns during a recession, it can still be a good time to buy a house if you have a good financial situation. Even more, you may be able to find foreclosures and short sales that offer extremely enticing low prices, during this period, but watch out for some risks that lead to potentially high costs in the long run. So, you can shop around for the best prices and mortgage rates in your area based on your need for a home at this time.