Buying During a Housing Recession
Originally published at Real Estate Blog at Fizber.com. You can comment here or there.
Housing prices took a 24% nosedive during the Great Depression of 1929. In hindsight, that housing recession was not really a good time to buy real estate in the short term because the recession lasted 10 years. It was long enough that some survivors still fold up and save pieces of used aluminum foil.
All other recessions since 1929 lasted a period of two years or less. Many of those recessions shared falling stock prices, high interest rates, high unemployment rates and a loss of consumer confidence, along with one other common trait: They were all good times to buy real estate.
Buying Homes in the Midst of a Housing Recession
When prices fall, the question is not really how low can they go but how much real estate can you buy before they go back up. If you are buying a home during a housing recession, getting a good price is just as important as being able to hold and ride out the housing recession.
Here are tips that can help you make a wise decision and capitalize on falling prices:
- Buying in a Down Market
How to figure out if it makes financial sense for you to buy when prices are falling. If prices haven't hit bottom yet, how to tell where the bottom is likely to rest, and why it might not really matter. - Looking at Overpriced Homes
- Buying Distressed Sales in a Housing Recession
- Before Buying a Short Sale
- Buying Post Foreclosures: REOS
In depressed markets, it's not unusual for some sellers to price their home too high. If you spot a home that's been languishing on the market, it might warrant a second look. Here's how to tell.
Foreclosures, short sales and REOs: differences. Buying distressed properties under market value. Which is more profitable for a buyer -- short sales, foreclosures or real-estate-owned (REO's)? How CA law affects foreclosure sales.
Before you buy a short sale, read about your rights. Why the seller's lender needs to approve a short sale and how to understand what is involved in closing short sale transactions.
How to buy a foreclosures / REOs from the bank. Negotiating offers for bank owned homes. Difference between REO homes and short sales. Hiring an agent to buy REOs.
