Is 2020 A Good Year To Buy A House

The tradition of setting new year’s resolution isn’t something new. In fact, studies show that it has been around for over 4000 years. Before every New Year, people tend to reflect on how they spent their year and what they can do better in the next year. Like every year, people all around the world did the same at the end of 2019. Little did they know that the pandemic is going to flush over their new year’s resolution.
We are living in a time where traditional values, norms and the traditional way of life itself have been disturbed. People are being laid off their jobs and businesses are losing money by the millions. The global economy as we know it is trembling. The scenario looks financially apocalyptic. In the 2008-2009 financial crises, the housing market bubble exploded. Under the current pandemic, the world is moving towards yet another massive financial crisis. However, there is always a silver lining in every problem. The experts are eyeing a reduction in the prices of houses and other property in 2020.
The State Of The Housing Market In 2020
The pandemic is set to shatter the global economy. Businesses are getting destroyed and people are losing their jobs. However, things look a bit different for the housing market. The number predicted in 2019 show that the housing market was set to grow in 2020 and the prices were set to increase by 10% but now the predictions show that 2020 will see a price decline of 11% in the housing market. At the start of the pandemic, both buyers and homeowners enjoyed a rather good run. Buyers were enjoying low mortgage rates whereas sellers can take advantage of the low-interest rates during the pandemic. Experts had already speculated that the interest rates are going to stay low in the year 2020 even before the Coronavirus was considered a pandemic. Overall it seems that the housing market will remain relatively stable as compared to other global sectors.
Of course, we can’t undermine the fact that people are losing their jobs and that it is going to become very difficult for people to pay their mortgages or buy new houses even if the price of the house and rate of the mortgages is lower than it was initially expected. The healthcare situation is intense and people are making hasty decisions based on what’s happening around the world. However, if you want to buy a house or you have recently purchased a house, then instead of panicking in the current situation, it is better to do what you always do when thinking about buying a house; i.e. study the housing market. There is always a silver lining in every problem. So let’s take a look at what buyers can get from the housing marketing during the current year.
Should You Buy A House In 2020
With the ongoing pandemic having no stop sign in sight, and the vaccine looking months away, people are very concerned about their financial wellbeing. They are trying to save as much as they can and the general vibe around the world is to not invest in current times. This is a misconception. Businesses are failing but on the other hand, many people are also gaining advantage from the situation. If you are someone who is looking to buy a house then you are in luck. You shouldn’t be discouraged by the global pandemic. Try to stay strong and optimistic in these times and you will make it through. If you were looking to buy a house before the pandemic but stopped due to the unclear financial situation then we have got good news for you. Now is the best time for you to buy a house.
The market is still relatively stable and both sellers and buyers can get a good deal in the current market. So even if you buy the house it will be a good investment for your future. Let’s check out some of the reasons that make 2020 a great year for people looking to purchase a house.
Enjoy A Quick Buy
The pandemic has forced many sellers to sell their houses and properties before the prices decline even further. This has created a great opportunity for buyers who are looking for a good deal. They can negotiate a price and get a good deal in a relatively quicker time as the more time the seller takes to think about the offer, the value of the house declines even further.
Entry Level Houses Are In High Supply
Even before the pandemic, the builders were focusing more on entry-level houses instead of luxurious properties. This is because millennials are now purchasing houses for their own families. Millennials make up the largest portion of the house purchasing market at the moment and entry-level houses are ideal for them. With low competition and a high supply of entry-level houses, buyers are bound to get a good deal in 2020.
Mortgage Rates Are Low
One of the silver linings of the pandemic is that the mortgage rates have hit a record low. This means that the buyers who couldn’t get a house on costly mortgages can now invest in the housing sector as well. The mortgage rates are expected to go further down throughout the year, creating a more attractive environment for the buyers.
Prices Will Keep Declining
The house prices are expected to slowly decline through 2020. The decline in prices may even continue until the fall of 2021. However, if the prices will only decline slowly which will keep the market at a very stable position. As a buyer, you can take advantage of the reducing prices.
Low Competition
The pandemic has left many people without jobs. People are trying to save money from wherever they can. This means that people who were looking to purchase a house before the pandemic are now trying to avoid investing in any market. This means that people looking to buy houses will have less competition in the market as compared to pre-COVID-19 time.
The Housing Market Isn’t Going To Crash
Many people who are not familiar with the housing market are speculating that the market might face a similar crash as that of 2008-2009. However, this cannot be further from the truth. The more experienced people in the sector believe that the market is going to stay rather stable throughout the pandemic. The prices may decline but the decline will be short-lived and the market will start growing once again in 2021.
Conclusion
Judging by the information above, we can easily say that 2020 is a great year to invest in the housing market. With mortgage prices hitting a record low, 2020 may be the best year for buyers after the housing market bubble burst in 2008-2009. Don’t get panicked by what you hear about the market. The market may see some ups and downs but it is still going to stay relatively stable throughout 2020. So if you are thinking about buying a house this year, do it without any hesitation but don’t forget to study the market and area of your desired property before you make the purchase.