This is going to be an exciting year for real estate. The upcoming presidential election, a possible recession, and political tensions are all factors leading to confusion and hesitancy.
Will the Presidential Election Impact Real Estate?
Election years can be a tricky time for the market. During this time, both sides of the spectrum will be preaching conflicting statements about the economy – leading to confusion among potential buyers and sellers.
That’s why many people tend to sit back and wait until the election is over before making any major real estate decisions. This isn’t a new phenomenon, but with the market’s current strength and mortgage rates at historic lows, putting off buying or selling could mean less of a reward as more time goes on.
Is a Recession Around the Corner?
When a media storm of recession talk hit the news in 2019, many people affiliated it with another housing market collapse. The fears aren’t surprising, but they’re also not accurate.
Economists are now reporting that if a recession occurs, it may not be until 2021 or even 2022. On top of that, the real estate market is not a likely driving factor for an economic downturn, and the four recessions before 2008 saw little to no effect on the housing market.
What If I Buy a Home and Prices Depreciate?
It’s the greatest fear a new homeowner has. Many prospective buyers may be holding off on their search because of uncertainty tied to the upcoming presidential election and recession rumors.
The market is strong and big hitters like Freddie Mac, Fannie Mae and NAR predict home values to continue to appreciate through 2021.
Buying now is a sound investment, and buyers should take advantage of the current low mortgage rates because waiting to purchase a home could mean paying more.
Should I Take Advantage of Interest Rates Now or Wait?
Essentially this comes down to one thing: why take the chance?
Interest rates are currently at historic lows, and you are probably unaware of their increased buying power. Although the mortgage rates are projected to hold steady around 3.8%, certain factors could change this.
If you hold off on your home search and mortgage rates do rise, you will end up paying more for the same house.
There are major benefits to buying your dream home this year.
