Buying a home in times of recession has both pros and cons, and both should be considered before making this move. During a recession, the US economy is down, the housing market and house prices are depressed, and there are high unemployment figures. Consumers tend to get nervous about making large purchases or long-term financial commitments, and lenders require great credit to even consider a home loan. With all of this, it may make sense for some people to buy a home during these economic times, as long as the pros outweigh the cons. A careful assessment must be done to examine the individual situation, and this can help determine whether the advantages of buying a home during difficult economic times are worth the disadvantages.

Pros: There are many advantages to buying a home during a recession. As long as you have a credit score of 700 or higher and can provide a 20% down payment, most lenders will offer a mortgage. In a recession, home values ​​often plummet, and this means you can get a home for much less now than five years ago. There is a wide range of homes on the market, including foreclosures and private sellers. Current mortgage rates and interest rates are incredibly low, and homes on the market have fantastic prices in many cases. Another advantage is that first-time home buyers can take advantage of tax credits worth thousands of dollars. In addition to a large number of foreclosures, many homeowners have found themselves underwater and can be extremely motivated to sell. The housing market is a strong buyer’s market right now, making it an ideal time to buy for many.

Cons: While buying a home during a recession has many benefits, it is important to remember that there are also drawbacks. During a recession, future economic prospects are unclear and there is a lot of uncertainty. Home prices could continue to fall after the home purchase, causing rapid loss of value and equity. You could end up losing your job if your employer downsizes or closes the doors, and this could make it impossible for you to keep up with your mortgage payments. In tough economic times, many people move to a better location, and if you’ve bought a home, this can be difficult to do. The rising cost of fuel and food can make finances difficult and this could result in foreclosure in the future.

Buying a home during a recession will make sense to many people. You can get a bigger, higher-priced home for less thanks to falling home values, but this could also be a downside after you’ve made the purchase. This method can be very beneficial to many, but it is not suitable for everyone. For some people, the downsides of this purchase and the uncertainty caused by the bad economy mean that now is not the time to buy a home.