Recession Bargains: What 15 Items Should You
Buy Now to Take Advantage of Falling Prices?
by www.SixWise.com

The United States has been in a period of deflation in recent months, which means prices have been falling on a widespread level. Fortunately for the economy as a whole, there’s been talk that the recession may be starting to level off. But while this is a good thing for job security and the housing market, it also means prices may start to creep back up.

For now, though, there are still plenty of good deals to be had, but there’s no telling how long they’ll last.

In the past year, the Consumer Price Index, which measures the costs of typical goods and services, dropped 0.4 percent, the first 12-month price decline since 1955. However, some prices have fallen more than others. If you’re looking for a bargain, which items should you buy now?

1. Food: Prices on everything from pasta to eggs have been falling recently, so now’s a good time to pull out the cookbooks and get familiar with the family dinner. The good deal only counts on food you eat at home, as the cost of food when you eat out has gone up.

2. Hotels: With travel levels down, deals abound for cheap hotel rooms around the U.S. Even some of the nicest hotels are struggling to fill up rooms, and you can stay at a four-star hotel for a fraction of the cost. You can even find discounts and free nights at places like the Ritz-Carlton and Four Seasons, which typically don’t discount anything.

3. Gas: If you’ve been thinking of taking a road trip, now would be a good time. Prices have recently fallen again in the last couple of months, but may not stay that way for long.

4. Airfare/Travel: Need to fly somewhere? Thinking of having your family from out of state come to visit? Airfares have gone down for seven months in a row, so now is a great time to buy. There are also great bargains for cruises and all-inclusive vacations to be had right now.

5. Cars: Prices on used cars and trucks are down, plus some dealers are even offering 0% financing. There are good deals to be found across the board, considering demand for automobiles went down by 33 percent since October.

6. Houses: The housing market is beginning to show small increases, which means prices may soon follow. If you’re in the market for a home, now may be the time to make your offer. Aside from the lower buying prices, mortgage interest rates are beginning to go below 5 percent for a 30-year, fixed-rate loan, according to Bankrate.com.

7. Ebay stuff: People looking to make some quick cash may be willing to part with their treasures for less than ever before. If you’ve had your eye on an ebay something, you may get it for a bargain now.

8. Fitness memberships and equipment: With sales down, you can negotiate great deals on gym memberships and equipment. Stores are also offering super sales to keep an eye out for.

9. Stocks: If you’re willing to brave the market, you can buy shares at rock-bottom prices.

10. Diamonds: Looking to pop the question? Need an anniversary gift? Diamond prices are down 14 percent, on average, since mid-2008, according to the Jewelry Research Institute.

11. Furniture: When home sales drop, furniture prices do too. Retailers have excess inventory and many are offering great deals and incentives to get you to buy.

12. Designer clothing: Many women have taken to buying their clothes at lower-cost retailers amid the recession, which means designer chains are struggling -- and cutting prices in response.

13. Toys: The toy industry is responding to parents’ tighter budgets and many will be coming out with more affordable toys come summer.

14. Computers: Personal computer prices fell by 13 percent in February, compared to last year, making it a great time to buy. Laptop prices are a particularly good deal right now.

15. TVs: With prices down 9 percent from a year ago, even large, flat-panel TVs are becoming more affordable.

Recommended Reading

How to Make a Weak Economy Work Best for You

What is Deflation, Why Should You be Concerned -- And What Can You Do?

Sources

Yahoo Finance April 15, 2009

Forbes.com March 31, 2009

Newsweek.com