Most people aren't thinking about buying a new home right now when the economy is headed into a recession. However, now is actually the perfect time to buy for several different reasons. Regardless of whether you live in Atlanta, Nashville or even Charlotte, you can benefit from buying a house today.
An increase in competition among sellers is one of the major reasons why now is the right time to buy. With more and more homes being placed on the market each day and fewer people wanting to make a purchase, sellers are dropping their prices in order to make their home attractive to the few potential buyers available. This can be extremely beneficial to you since it provides you with the opportunity to get more house for less money. In fact many people find that purchasing a home during a recession actually allows them to get real estate below its actual value.
The growing number of foreclosed homes on the market for sale is also a reason why now is the time to buy a new home. As people get behind and default on paying their mortgages due to the economic recession, lenders and banks foreclose on homes and put them up for sell. While they want to get as much money back as possible, they also know that it isn't beneficial for them to have a house sitting on the market empty for months and months. Instead they often have auctions or lower the price drastically to provide for an immediate sale of the property. You may find that you can purchase a home for thousands of dollars less than what you would pay if you were purchasing it from a traditional seller. Of course you do have to be somewhat careful with foreclosed homes since the previous owners may have caused significant damage prior to moving out as a way to make a statement to their lender.
Lower prices for housing are also a result of an immediate need for some sellers to rid themselves of their home. Every day throughout the United States people are picking up and moving in order to take advantage of new job opportunities or to meet the needs of their family. Most homeowners don't have the financial means to support two mortgages while they wait for their old home to sell. Therefore, they need to sell it immediately, which causes them to lower the price. In addition, you may be able to negotiate an even lower price for the actual home or property since they are more willing to negotiate in order to make the sell.
Although you may be currently concerned about your finances and the future state of the economy, now is the perfect time to purchase a new home if you have the financial means to do so. A number of different factors are causing home prices to be at record lows, which gives you the opportunity to buy a home for much less than what it is actually worth.