Why 2020 Might Be the Perfect Year to Buy a Home
There are so many factors to consider when deciding to buy a new home. Currently, new home communities continue to be built and interest rates are at historic lows. There is no way to predict when and by how much interest rates will rise again. So, what is in store for 2020? We can’t predict the future, but we can look at the trends and there is definitely good reason to believe that next year will be a great year for buying a house.
Evaluating Different Parts of the Country
Whether or not housing prices will rise next year is debatable. It also largely depends on what area of the country you live. For this reason, it is essential that you do your research before buying. Overall, the majority of the U.S. is experiencing increased home values, and this trend is expected to continue into 2020.
Looking at Interest Rates
Interest rates are critical for determining how much home you can buy. If interest rates are higher, you will have to opt for a lower priced house. That is one key reason why now is the time to buy a new home. Interest rates are at historic lows.
Recently, Freddie Mac announced the average rate for a 30-year loan is 3.49%. History clearly points to the fact that rates will eventually rise again. With that stated, however, many financial experts believe that rates will continue to maintain their levels in 2020. This fact reinforces the idea that now is a great time to buy a home.
For Current Homeowners
If you are currently a homeowner, 2020 should also be a great time to sell and buy a new property. More than likely, your home equity has been on the rise in recent years. Also, home inventory is limited in most regions, which translates into more offers for you and a higher selling price. Combining these two factors, you have the potential for a profitable situation.
Strategizing for Your Purchase
Low interest rates make buying a home an attractive option. But, it is important to remember that you are likely to face some competition due to the lack of inventory. While new townhome communities and new housing developments are popping up all the time, inventory remains low in most areas.
There are ways to minimize the impact that limited inventory can have on your home buying experience. Take time to decide well in advance what kind of home you want. Think about what is essential and what is less important, as these decisions can help you refine your search.
Ultimately, all factors point to the fact that 2020 is the time to both buy and sell. Historically low interest rates are a real estate gamechanger, and those rates look as though they will remain low in 2020. If you are considering buying a house or selling a home you currently own, it’s time to explore all of your options.