With so much happening across the country, you may be asking yourself how the present crisis is impacting property trends. Well, surprisingly, median house prices are all the way up to $320,000! Will the rest of 2020 attract more of the exact results?
Whether you are selling, purchasing, or staying put, here are the 2020 property trends you will need to know!
Home Prices Are Still Rising Slowly
In April 2020, home prices grew by a teeny-tiny 0.6percent compared to last year–down from the almost 4 percent growth rate in March! This slower growth trend is probably due to the craziness of this coronavirus and marketplace uncertainty.
But within the next week of May, home prices moved their way back up to a 3% growth rate–nearly to pre-COVID levels! So there is a chance that house prices may be regaining some momentum.
National Association of Realtors Chief Economist Lawrence Yun considers home costs will make their way back up to 4 percent increase overall in 2020. Thus, you will probably see home prices continue to creep up, but they likely won’t knock your socks off with rapid growth as we have seen in prior years.
What Higher Prices Mean for Sellers
But also remember that a good deal of buyers are being priced out of the market right now, which might lead to fewer supplies for your dwelling. With fewer supplies to go around, you want your house to really stick out from similar ones locally. Prepare your home for potential home buyers and work with a real estate agent that will assist you to list your house at the perfect price.
And make sure to watch for the ideal offer. Some buyers may attempt to gut punch you with a very low number. If you are not in a hurry to move, wait for an offer that gives you the maximum profit. Bear in mind, the less desperate individual always has the upper hand when negotiating!
What Higher Prices Mean for Buyers
If you are going to get a house in this expensive market, you absolutely must discover how much home you can really afford. Crunch the numbers yourself with our free mortgage calculator and figure out a monthly payment your budget can handle.
Do not rush into a house purchase that does not make fiscal sense for you no matter how much stress you are feeling watching competitors pluck good houses off the market. If you can not put down at least 10–20% on a 15-year fixed-rate conventional loan, then you likely can’t afford a home in this market. A down payment that is less than 10-20% will strangle your budget with enormous monthly mortgage payments.
Mortgage Interest Rates Are Super Low
Mortgage interest rates have been trending down–even prior to the pandemic. In May, the average rate of interest for a traditional 15-year fixed-rate mortgage (the lowest kind of mortgage and the only type we urge ) dropped to 2.69% –the lowest it’s been in over seven years!
Economist geeks think interest rates will continue to keep low until the market is near normal again. But interest rates likely won’t go so low as to hit rock bottom since lenders still have high demand from current homeowners to refinance their mortgages at lower prices.
If you would like to refinance or get an intelligent mortgage that will help you pay off your house fast, speak with our friends at Churchill Mortgage.
What Lower Rates Mean for Sellers
If interest rates stay low, buyers will be more motivated to purchase your house sooner than later. However, if interest rates do begin to grow later in the year, simply plan for your home to be on the market a little longer. A mortgage is a huge commitment, and adding higher interest rates into the combination will make many buyers pause.
An experienced realtor can help you set the appropriate expectations on how much money to offer your home for and how long you are going to need to wait around for the best offer.
What Lower Rates Mean for Buyers
Despite the fact that interest rates are super low, be intelligent and go to get a traditional 15-year fixed-rate mortgage (unless you can purchase with money). Avoid getting locked into paying the excess interest and fees that include rip-off mortgages such as FHA, VA, USDA, and adjustable-rate ones. That way, you will know precisely what your payment will be over the life span of the loan and you will pay it off quicker!