Ready to get out of your home?
Three months ago, I was sitting on my couch thinking how nice it would be if I could spend every day here. Well, my dream came true! Now as the world re-opens, I can’t help but feel hesitation to get out of here, even though I’ve been desperate to get back to my favorite restaurants. Not to mention the gym! But home seems to winning again. The comfort and safety of home is undeniable which is why we should really consider homeownership from all angles in this current environment. Given that interest rates are likely to remain low for a long while, but economy may not get back to full strength for years, how do we see the prospects for the home buyer going forward?
Traditionally when the economy has slowed, homes prices fall, interest rates go down, building and buying go up, and eventually the housing industry pulls us out of recession. Since the 2008 financial crisis, however, home prices have been driven by scarcity of supply and low rates. Supply is not expected to increase in the coming years so we don’t expect to see a significant decline in home values nationally. What that means for you is that affordability may be an obstacle. With the rate of unemployment now in the teens, though, who knows what will happen to home prices in the near term. They could easily drop, rendering my above point about affordability moot. Reach out to our professional staff and let them keep you informed and ready. For now, we know one thing: Rates will stay low. So when the economy rebounds, unemployment falls and the pool of eligible borrowers starts to expand, it could be even harder to get into that house of your dreams. Don’t miss out!