Even though the economy has rapidly changed in the last few years, today many people find themselves with deep concerns when they consider buying their first home.
Perhaps you’ve heard horror stories about the market suddenly crashing, and you’re worried that maybe you’ll lose your investment.
A house is likely the largest purchase you’ll make in your lifetime, and while it’s wise to put careful thought into this decision, you also don’t have to be afraid.
You just need to do your research and make sure you are well advised.
Buying a home under the right circumstances can save you from throwing away your money on rent year after year, and it can also be a great investment for your future and your family.
Still need convincing?
Here are three reasons why we think 2020 is an ideal time to buy your first home:
1. Mortgage Rates Are At An All Time Low
As 2019 comes to an end, statistics show that the average rate on a conventional 30-year home loan is 3.73%.
When you compare that rate to 4.17% in 2014, you can see how overtime this decrease can add up to quite a savings and may make 2020 an ideal time to purchase.
2. Home Prices Are Slowing Down<
According to Zillow’s senior economist Aaron Terrazas,
“As we close in on the longest economic expansion this country has ever seen, meaningfully higher interest rates should eventually slow the frenetic pace of home value appreciation that we have seen over the past few years, a welcome respite for would-be buyers.”
Basically, housing prices have been spiking due to our thriving economy, but at the end of 2019 these prices are starting to slow down. This means the next year could be a much more affordable time to buy.
3. The Economy Is Good
As of October 2019, the unemployment rate is at 3.6 percent, the lowest our nation has seen in nearly 50 years.
When employment is good, people have more money to spend which means the economy continues to thrive for all. Buying a house in a thriving economy can be a great decision for many families.
In closing, we will quote the Home Buying Institute,
“Will 2020 be a good year to buy a home in the U.S.?
Barring any financial calamities, such as a recession, next year could be a great time to buy in most cities across the country.”
Need more help deciding if it’s the best time for you to buy a home in 2020?