Why 2020 is Still a Good Year to Buy

This year has most likely thrown a wrench into many of the plans you had. The coronavirus pandemic has upset just about every area of our lives including work, school, vacations, moving, and so much more. While 2020 might not be the year you envisioned, if your plan included buying or building a home, here are a few reasons why you might want to stay the course.

Mortgage Rates are Low - With mortgage rates at near all-time lows, your ability to by more home at a lower cost has never been better. Locking in a low mortgage rate on a hew home can save you thousands of dollars over the life of your mortgage loan. According to Bankrate, today's average 30-year mortgage rate is 3.07% and a 15-year is 2.54%. Those rates are significantly lower than they were just a couple of years ago. Though it is possible that mortgage rates could continue to fall, it is not likely. Once the coronavirus is under control and the economy starts to get back to normal, mortgage rates will begin to rise.

Selling Your Current Home is Easier – If you have an existing home to sell, you are in luck. The inventory of homes on the market is very low (and has been low for a while) and now is a great time to sell. Total home listings are down 36% compared to the same time last year, according to Realtor.com. That means there are more buyers than sellers in the market, making it easier for your home to sell. The rule of supply and demand also means your home will most likely sell for more money and faster than it might in a different housing market. 

Home Prices are on the Rise– According to recent numbers from Realtor.com, the median listing prices are 9.9% higher than they were last year. Home prices have steadily been on the rise and that trend is expected to continue, especially with a continued shortage of homes available. That is great for selling, but if you are a buyer, waiting could cost you money. 

Building a New Home Allows for Choices – Quarantine has taught us that having a functional living space is essential. With entire families spending all their time at home, including children attending school virtually and parents working from home, additional space like home offices, flex rooms, and finished basements are in high demand. Building a new home gives you flexibility that is hard to find with an existing home. Today’s floor plans also tend to be more family-friendly, open-concept, and are built with more amenities. Having the space you need for your family has never been more important and waiting to get a new home might just cost you your sanity. 

Of course, everyone's situation is different and the decision to buy or build is unique to each person and depends on multiple factors. If you are fortunate to be in the position to buy or build a new home, 2020 might be the perfect time to do it.