Thinking about making the switch from renting to buying? Or, are you contemplating an upgrade to a larger home for your growing family? Now may be the right time to act. Since the 2019 real estate market continued to grow, purchasing or selling a home in 2020 may be one of the smartest financial moves you can make. Here’s a rundown of the highs, lows, and lessons we learned from last year. Let’s dig in!
The 2019 Real Estate Market
Real estate industry experts have finally begun to see home prices correct. Leading up to 2019, homes were being valued at rates that aggressively outpaced buyer incomes. However, last year, the two started to come into alignment. While the cost of homes continued to rise nationwide, this increase became more moderate in 2019.
This was certainly great news for buyers, hoping to break into the market, as owning a home became more attainable again. However, it was also good news for sellers, as prices continued to move along a steady upward trajectory.
The fact that home prices are becoming more affordable is reason enough for new buyers to jump into the market. However, another reason to buy now is that mortgage rates have remained buyer-friendly.
In fact, mortgage rates took a dip in 2019. And that trend is continuing into 2020, with rates lingering at around 3.65% in January. This is a steady decline from the year prior, when the rate was 4.45%. With mortgage rates bottoming out, it’s also a good time for current homeowners to sell.
Following the 2019 Real Estate Market
If you’re thinking about selling your house in either 2020 or 2021, you may want to go ahead and do it this year. That’s because the selling environment is fairly predictable at the moment. But circumstances could easily change between now and next spring, making it harder to finalize a sale in 2021.
So, while supply and demand are balancing out, and prices are favorable for both buyers and sellers, it may be in your best interest to list your home now.
How We Can Help
We have a proven track record of using our extensive connections to help both buyers and sellers. Take a look at all of the homes we sold in the midst of the 2019 real estate market to get an idea of how we can make your real estate dreams come true in 2020.