2020 is Still a Good Year to Buy
September 14, 2020
The coronavirus pandemic has upended all areas of our lives including work, school, vacations, entertainment, moving, and so much more. If you had big plans for this year, you have likely revised those plans a few times. While 2020 might not be the year you envisioned, if your plan included buying or building a home there are a few reasons you might want to stay the course.
Low Mortgage Rates – In terms of mortgage rates, there has never been a better time. Rates near all-time lows give you the ability to buy more home at a lower cost. According to Bankrate, today’s 30-year mortgage rate is just over 3% and a 15-year is near 2.5%. Those rates are considerably lower than they were just a couple of years ago. Locking in a low mortgage rate on a new home now can save you thousands of dollars over the life of your home loan. Though it is possible mortgage rates could continue to fall, there is not a lot of room to go much lower. Mortgage rates will likely rise once the coronavirus is under control and the economy starts to get back to normal.
Selling Your Current Home is Easier – If you have an existing home to sell, you are in luck. The lack of inventory of existing homes on the market continues to be a real concern. There just are not enough properties for sale. Total home listings are down 36% compared to the same time last year, according to Realtor.com. That means there are more buyers than sellers in the market, making it easier for you to sell your home. Using the rule of supply and demand, your home will most likely sell for more money and faster than it might in a different housing market.
Home Prices are Rising– Realtor.com shows the median listing prices of homes are 9.9% higher than they were last year. Home prices have steadily been on the rise and that trend is expected to continue, especially with a continued shortage of homes available. If you have a home to sell, that great news. If you are looking to buy, waiting longer could cost you money.
Building a New Home Gives You Choices – Months of quarantine have taught us that a functional living space is more important than ever. Entire families are spending all their time at home, including children attending virtual school and parents working from home. Additional space like home offices, flex rooms, and finished basements, which used to be “would be nice” have become “must-haves”. Building a new home gives you the flexibility you cannot always get with an existing home. Today’s floor plans also tend to be more family-friendly, open-concept, and are built with more amenities. Having the space you need for your family is essential and waiting to get a new home might just cost you your sanity.
The decision to buy or build is unique to each person and there are many considerations. However, if you are fortunate to be in the position to buy or build a new home, 2020 might be the perfect time to do it.