Why Buy or Sell Your Home Now?

It’s a great question! Realtors are almost always telling you it’s a great market, Buy Now, Sell Now! However, the stats seem to agree for 2020, you should buy or sell your home now. Let’s take a look at recent and not so recent history as well as the forecasting trends for the Real Estate Market this year.

What are the Experts Saying?

Most experts agree, 2020 is going to continue to be a Seller’s Market, but why? It’s the old adage of Supply and Demand. Bottom line is the supply of available homes is not enough to fulfill the demand of home buyers in the market. But why?

Mortgage Rates – Past, Present and Future

The number one reason are attractive interest rates for mortgages. Most people secure a mortgage loan when buying home. With interest rate remaining attractive, the time is now. Remember, what does up, must come down and vice-versa (which is where we are, waiting for them to go up again.)

All you have to do is look at the last few decades to see we have enjoyed historically low interest rates these last 10 years.

Wow, the 80’s were a great decade for a lot of things but home buyer’s sure paid high interest rates!

As you can see, from history, we have enjoyed low rates the last 10 years.

As of this writing, the mortgage interest rate is 3.65%. What is predicted for the rest of 2020 for interest rates and other housing data?

2020 Predictions

The cost of borrowing money for purchasing a home is definitely one of the biggest factors in deciding to buy or not. But for both buyers and sellers, life events influence our decisions – wedding, divorce, new baby, down-sizing, new job, retirement, etc…

Let’s see what some are forecasting…

Will Demand Continue?

Most agree, with interest rates remaining near all-time lows, we won’t have a problem with demand for housing. Some are conservative stating it will be the same as 2019 where others are seeing the demand grow in 2020.

With less baby boomers exiting the market, choosing to stay in their homes longer, and millennials entering the market to buy, all agree inventory will still be tight into the new year.

Home Prices and a Possible Recession?

In early 2019, some expert economists were predicting a recession may occur during 2020. However, with the economy remaining strong through 4th quarter, many have changed their tune.

Barron’s Annual roundtable convened on January 6th. The group is made up of 10 veteran economists and investors. They all agreed there is almost no chance of a recession this year. No one can guarantee the future but no recession is nice to hear!

Home Prices are predicted to continue their appreciation, considering the supply/demand dilemma – good news for home owners and sellers!

It Boils Down to…

Basically, buy or sell your home now, in 2020 is good advice! Buyers can enjoy near record low interest rates and sellers have great equity in their homes thanks to the on-going appreciation.

It’s time to move on with your story! Let us guide you.