Some of the first things we look at when determining a favorable seller’s and buyer’s market are employment, income, and consumer confidence levels. Those 3 points combined with current rates and loan programs give us an excellent sense of how big the opportunity is for you.
Should you buy a home in 2020?
Here’s what current trends are telling us.
- The current economy is fairly stable and steady, with employment rates high and interest rates low.
- Demand for starter homes is also high thanks to millennials
- Builders are also concentrating on more entry-level homes rather than the more expensive “level-up” homes
- Retiring baby boomers are also driving the demand for smaller homes
The 2020 Outlook for Buying a Home
With current rates on the lower end of the scale, it’s an excellent time to buy. However, first-time homebuyers may encounter competition. With baby boomers looking to size down and builders slow to switch from larger homes to starter homes, first-home home shoppers should prep for smart bidding.
Nonetheless, it’s still a favorable time to buy a first home.
Other than the market and rates going in your favor, there are other things home shoppers need to remember:
- Get your debt-to-income (DTI) ratio as close to 43% as you can. Calculate your DTI by dividing your debt by your gross monthly income.
- Make sure you have enough for a down payment plus additional for closing costs. Depending on the loan you qualify for, your downpayment could be as little as 0-3.5%!
- Check up on the health of your credit. If it’s on the low side, take a few months to work on it.
Should you sell your home in 2020?
Other the market, other points to consider when looking to sell your home are:
- Does your current house fit your lifestyle? If you are in retirement age, then your large family home is likely more than you need. Likewise, if your starter home is busting at the seams with your growing family, leveling up to a larger home may be called for.
- Is your home in high demand? If your home is currently a “hot item” because of location and features, banking on its desirability is attractive.
- Are new homes being built in your area? If you’ve been contemplating selling your home and new constructions are underway, you want to move fast! With more to choose from, buyers will take their time to shop and deal.
The housing market in 2020 is looking great for both sellers and buyers –that is, for those that act now. While rates are relatively steady, even a small change upward could cost you hundreds of dollars more. Why not lock it in now and have the peace of mind of an affordable mortgage?
Call us today to get matched with your best loan option.