Are you tired of renting and long to buy a home? Maybe you feel intimidated by the loan process and are leery of getting in over your head financially. This can be the year that you resolve to turn your dreams into a reality. Real estate and financial experts forecast that 2020 may be an ideal time for purchasing a home. Here are some strong points to consider before making such a purchase.
The Price May Be Right for You
Financial analysts cannot predict the future for the real estate market. Slight variable shifts can alter home values and interest rates at any given time. However, these experts can compare data and trends from the past few years to estimate figures for the current year. Most suggest that real estate prices will only see a modest increase if the economy remains stable. The chances are good that you can find the right home in your price range.
Another financial factor is the federal interest rate, which fluctuates with the market each day. Since 2018, the interest rate has remained relatively low. Although you may have fewer choices in your local housing market, it might be easier for you to get a loan. Before you go house hunting, talk to an experienced financial advisor or real estate agent and talk about your options. According to Robin Sweeney, a real estate agent in Scottsdale, AZ, you can access the entire MLS database of active homes, with the strongest property search on the market. This will help you find what you want within your price range.
New Constructions Are Still Available
During the last two to three years, construction companies reduced their output of new homes due to higher costs and interest rates. Since we have seen a modest boost in the American economy and mortgage rates have hovered below four percent, you will see more new houses and subdivisions popping up in your neighborhood.
Maybe you have always wanted to build your dream home to your specifications. This would be a good year to do it. If not, talk to your real estate agent about what you are looking for in a home. You may be surprised at the beautiful homes that come on the market every day that you could afford.
America Is Facing a Down-sizing Trend
Have you noticed the ongoing down-sizing trend that is continuously being highlighted on media and in print? The Baby Boomer generation has reached retirement age, and many of them are selling their large homes. Most of them have grown children, so they are opting for smaller townhouses and condos. Do you have a big family and have always dreamed of a spacious home? Some of these Baby Boomer homes might be just what you want. Maybe you are the one who is down-sizing. Most condos offer efficient space and amenities that would be worth your money.
Real Estate Is Still About Location
Any real estate agent will remind you that location is a crucial element of the housing market. Are you planning to stay in your area? After you have discussed your wish list with the real estate company, they can search for comparable prices. Home prices can change even within a couple of mile radius, so be prepared. Perhaps, you want to buy a home in another city or state.
Work with your agent and do some research about the housing market in your potential area. In general, expect to pay higher house prices in prime locations. Even in high-class neighborhoods around the country, you may find a bargain if you keep informed. According to some experts, motivating prices may be available along with the coastal areas, so stay hopeful if you want a beach hideaway.
Buying A House Can Save You Money
Are you tired of pouring rent money into someone else’s property each month? Considering the national trend of rising rental costs, buying a home may be a cheaper option. Your potential savings depend on how much you pay for the house and your interest rate. If you buy a house this year and lock in the interest rate, you could be paying less for your dream home than you would be staying in a rental. Plus, you won’t answer to a landlord for any changes you want to make.