The year has brought many unprecedented circumstances that have affected the entire world’s economies and certainly, the housing market. There’s a lot of fear, doubt, and anxiety ever-present in making decisions now -- and we get it!
Buying a home in the midst of a global pandemic must feel strange, indeed. There are plenty of uncertainties. If you’re thinking of buying a home this year, you’re sure to have questions. But don’t worry, we’re here to help! Despite everything, there are still opportunities out there.
The right time to buy a home is different for everyone. Read below for some common questions about buying a home in 2020.
Is real estate still a good investment to make in 2020?
You can bet it is! According to many experts, there are several reasons for this.
1. Real estate is always a sure thing.
Indications show that the property sector may be one of the first industries to bounce back once confidence is restored and the crisis calms down. If you’re in it for the long run, then buying a home is a fantastic investment to make now.
2. Mortgage rates are at an all-time low.
This offers great opportunities for buyers to get homes for potentially lower payments. Besides this, there are also tons of bargain deals and incentives to take advantage of -- with less buyers on the market, developers need the cashflow.
3. Rent will continue to go up.
Ultimately, the value of property is based on its rental income. If you’re planning to rent out your property, this could offer tremendous value, especially in the long term.
4. There is less buying competition.
Especially for first-time homebuyers that are financially secure, this is good news. Since many potential competitors are either foreigners or sidelined by the financial consequences of the pandemic, you’re more likely to scoop up the chance for a great deal.
What credit score and down payment do I need now?
Typically, a credit score of 500 would be just about good enough for you to buy your home. But now, thanks to the virus crisis and employment instability, there are much tighter credit requirements. Many lenders have raised the required minimum score to at least 700 -- and a down payment of 20%.
Are there many options to choose from today?
There are certainly plenty of options. But if you want to find your dream home from the get-go, you might have less luck. Sellers have suspended home purchases, and some have even pulled homes entirely off the market due to the pandemic.
Our Takeaway
The answer to whether 2020 is a good time for you to buy a home is yes - at least if you’re finances are in order and you’re aiming for the long term. As an investment, it’s a great step. You’re potentially going to reap huge rewards down the line!
Still concerned about the housing market? Have more questions? Happen to be looking for a home in Fayetteville NC? We can help! Tour The Ridges at King’s Grant today.