This is going to continue to be an exciting year for real estate! Most likely, you are seeing news headlines that are sending another message. The upcoming presidential election, a possible recession, and political tensions are all factors leading to confusion and hesitancy. With the help of an article from Keeping Current Matters that can be found here, we wanted to take a moment to tackle them!
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.
According to George Ratiu, Senior Economist at realtor.com, “Housing remains a solid foundation for the U.S. economy going into 2020.” If you are on the fence about whether to move forward with a real estate transaction, let us at Charis Realty Group help! We are happy to provide up-to-date information to help aid in your decision.
Is a Recession Around the Corner?
When a media storm of recession talk hit the news in 2019, many people became 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 no effect on the housing market. According to several sources, home value are projected to appreciate in the coming years.
While no one knows with absolute certainty what the future of real estate holds in the years to come, the study of economic and market patterns can certainly aid predictions and projections… and these are good news!
What If I Buy a Home and Prices Depreciate?
Thankfully, data and predictions say otherwise. The market is strong. Freddie Mac, Fannie Mae and NAR predict home values to continue to appreciate through 2021. (See chart above.) You can also find Freddie Mac’s end-of-year press release here.
Buying now is a sounds investment, and we believe 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?
Interest rates are currently at historic lows, which in turn often increases your buying power as a buyer. Although the mortgage rates are projected to hold steady around 3.8%, certain factors could change this. If they hold off on their home search and mortgage rates do rise, they will end up paying more for the same house.
So what does this mean for you?
Leading money expert Dave Ramsey states, “When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.” At Charis, we take that to heart. We care. And we want to partner with you as you consider one of the most important financial transactions of your life. We want to help educate you and serve you as you seek to make a wise decision… providing information, insight, and support in each step along the way. Because, #CharisCares.