If you’re looking at homes in Southwest Florida, then you might want to be aware that a real estate market recession could be looming. In January 2019, reports came in that new homes were being built all over Florida, but fewer people were purchasing residential properties.
As someone who is interested in buying real estate, this is great news for you. It means that you may have longer to consider your purchasing options and can truly find the right home for your needs. However, it could also mean that the market is unstable.
When a recession is possible, should you buy?
A possibility isn’t a guarantee, so that’s something to consider. For instance, if the market is just having a “hiccup,” then it might get back on track. The housing market often has short recessions before they continue to grow during the spring and summer when people are more likely to look to buy and move.
Every time you look at a property, you need to consider several things before even considering buying. You have to look at your budget, the quality of the home and the potential for the value of the home to increase over time. Buying when markets are not as booming is a good choice since you’re more likely to get a seller willing to negotiate. However, if a recession hits after you buy, you could have the value of your purchase drop before it eventually increases again in the future. This is something to be clear about before you decide to sign a document for purchase.
Our site has more on what you can do to protect yourself and to make sure you’re making the right purchase.