With a recession looming in the UK, many, including myself, are holding out for property prices to decrease in order to make a purchase at a lower cost. While mortgage interest rates may be higher, the prevailing belief is that the potential reduction in house prices outweighs this concern, making buying during a recession seem advantageous.
However, if this strategy becomes widely known, wouldn’t it lead to increased demand during the recession as everyone seeks to capitalize on discounted prices? Could this heightened demand potentially exacerbate supply shortages and result in no significant change in prices?
I would greatly appreciate any insights or explanations on this matter!
When people do not have or have a low income, demand plummets. To win, you must be financially secure or have a recession-proof employment. I got lucky in 2008. I sold a long-term rental residence shortly before the crash. I bought a vacation rental with cash at the height of the crash for pennies on the dollar. I didn’t time it; it was just a blind squirrel finding a nut. Set me up for the rest of my life.
You’re right about the UK housing market! Here’s the thing:
Recession might bring lower house prices, but interest rates could rise too.
Everyone waiting for a deal could stall the market, but a price drop might spark a buying frenzy.
If there aren’t many houses for sale (low supply), prices might not fall as much as some hope.
Talk to a local realtor! They can shed light on your specific market. Buying during a recession is a personal decision - weigh the potential benefits and drawbacks carefully.
Not a finance expert, but a recession means that inflation would eat up all of your savings and current accounts. So it will still be expensive to own property