As uncertain as the year 2020 has been, we understand the hesitation one might feel in buying a new home. Although real estate is a good investment, should you purchase a home right now or wait until the new year with hopes that the world returns to normal? If you have the money to invest, we recommend going ahead and buying a home now. If you are worried about your financial state or feel unstable in your current job, we recommend holding off until the new year.
Evaluate Your Finances
With these uncertainties in the world, it is important that you evaluate your financial situation before considering purchasing a home. What does your savings looking like? Are you prepared financially if you have to take a pay cut at your job or if even worse, you lose it? These are all questions you should ask yourself before considering making a huge investment such as a home. If you feel nervous or unstable in your job situation at the moment, perhaps buying a home isn’t right for you. However, if you are confident in your current financial state, we definitely recommend looking at your housing options.
Take A Glance At The Housing Market
Interestingly enough, the housing prices have gone up this year amongst the pandemic. Many people would take a look at the housing market and think that because the prices of homes are going up, they should wait until next year to invest in one. However, this is not the case. The mortgage rates on homes right now are experiencing a record low. We recommend taking advantage of these low rates while they last.
Pricing Based On Your Desired Location
Remember that prices change depending on the location you are wanting to invest in. One reason for the increased prices might be because of a shortage of supply in that particular area. We recommend doing your research before choosing the location to which you plan to move. This will ensure that you are getting a good deal on the home and not overpaying in an area that has high prices because of a lack of supply.
Supply is Lower As The Year Closes Out
As we mentioned earlier, the supply is lower right now as the year is closing out. December is a challenging month because homeowners sometimes like to hold off-putting their house on the market until the new year. If you are house-hunting right now, you may not be able to find the home you are looking for. We want you to love your home, so waiting for the right one to come along is always a better option than settling for a house that may be of lower quality.
2021 Prices Will More Than Likely Increase
Although we think you should wait for the home of your dreams, it is also important to remember that there is no guarantee that a better deal is going to come along in the year 2021. In fact, experts are predicting that the housing market is going to be improving over the next several years. This means that, as the world recovers from the pandemic and the job rates return to normal, people will be buying and selling homes again. Although the supply of homes will be large again, the prices will also rise, making homeowners less likely to budge on asking prices.
Here’s What We Think You Should Do
As the year closes out, we recommend staying up-to-date with your local real estate agents. Let them know of the type of home you are looking for, and they will be able to guide you on the home that fits your needs. Evaluate your own financial situation and determine whether home buying is an option for you right now or if you should hold off until the new year. Lastly, if you are able to invest this month, we highly recommend taking advantage of the low mortgage rates while they last.
Contact Charles Burt:
Interested in buying a home in the Joplin, Carl Junction, or Carthage area? Contact our real estate agency service at CharlesBurt.com for more information about the current Missouri housing market.