Buy a house? In this economy?
Hear me out.
This is Jon Reed from NextAdvisor, and while you won’t see me house hunting right now, it’s only because I don’t plan on giving up my current mortgage rate of less than 5%.
But maybe it’s not a bad idea. Experts told NextAdvisor’s Katherine Watt it might even be a chance to own a home for a better price.
A recession may or may not lead to lower house prices. The housing market is slowing, which means you don’t have to compete with everyone and their siblings, cousins, and Facebook friends to get an offer accepted. You might even be able to get a seller to lower the price, or pocket a few mortgage points to lower those high interest rates.
The risk, of course, is that you may not be able to afford that house. The reason no one likes recessions is that they can mean you lose your job, see your income drop, or someone in your family could be fired. That’s why you need to make sure you can afford it if you decide to seize the opportunity to buy a home while on the go.
Of course, we may not be in a recession. We won’t know until a group of economists decide.
And if we’re not in a recession, well, stay the same way.