1. There will be more available homes.
House hunting felt like a daunting task last winter, when nationwide inventory hit its lowest level in recorded history. By the end of 2018, though, things finally started looking up, and in 2019, experts predicted more opportunities and less frustration for buyers. It will only get better in 2020.
But there’s a catch: Not everyone will be able to afford those homes. Thatâ€™s because the markets seeing the most increases in available homes tend to be more expensive,
If you don’t have big bucks, though, donâ€™t lose hope. The news is still hopeful . The supply of affordable homes for sale (under $300,000, which is about the median home price right now) might not be growing dramatically just yet, but it’s certainly not decreasing anymore.
2. Skyrocketing prices will slow down in the coming months
It’s another mixed bag here: Expect home prices to continue to rise, but at a slower pace than they have been. Experts predicts a 2.2% increase in home prices this yearâ€”compared with a nearly 5% increase last year.
3. Mortgage rates are at historically low
In fact, rates have been falling which is perplexing the pros but creating a prime opportunity for home shoppers. Rates did raise in previous weeksâ€”for the first time in 2019â€”to 4.46%. But that’s still historically low.
4. Rents are rising
Buying a home is a scary-expensive task in the best of circumstances, and when prices are climbing, it is hard to tell when buying your home is the most important. Should you wait or should you jump on the home buying express?
But keep this in mind: Rents are rising, too. In fact, they rarely decline. And while buying a home is generally going to cost you more in the short term than renting, you have to look at the bigger picture. Buying means, you’re building equityâ€”and not forking over your hard-earned dollars to a landlord.
If you can afford to buy now, you’ll thank yourself in the long runâ€”and whenever your friends get their annual rent increases.