Home ownership remains to be a big part of the American dream. A lot of families in the United States — whether they are just starting or having a growing one— are no longer satisfied with renting someone else’s home. If you’ve been daydreaming to have a home of your own for years now, then 2019 should be the year for you to make it happen.
While experts predict that house market may continue to slow down this 2020, experts believed that the real estate market is much healthier and is safe to invest. With that in mind, there’s no reason to postpone your home buying plans anymore. But before making the plunge in the market, there are some things you should consider. You should watch out for these two: interest rates & inventory.
Interest Rates For Home Purchases
Mortgage interest rates had not gone up much in 2018 but made a reversal at the end of the year. This 2020, it is projected that the Federal Reserve could raise the interest rate three times and is expected to reach up to 5%.
So how interest rates could affect you when buying or selling a house? Change in interest rates significantly affects your monthly housing costs. It also impacts your purchasing power or the amount of home you can afford with your money.
Though a higher interest rate can be intimidating, it signals a healthy economy. A robust economy likely means more people are getting higher salaries and will be inclined to purchase a new home.
Inventory of Homes
Real estate inventory is the number of homes available for sale and serves as an indicator of the current market. There should be enough supply of homes for sale for a period of six months to have a balanced or normal market. If the inventory is less than four months, it is favorable for sellers while more than nine months in favor of buyers.
According to the National Association of Realtors, listing inventory is currently at a 3.9-month supply. The low inventory has caused the home prices to increase for the past years. On the last six months, an improvement in the inventory of homes for sale was recorded.
Find The Best Hilton Head Real Estate Agent.
If you want to buy a house with confidence, make sure you have a reliable and experienced local real estate agent. Charles Sampson Group of Charter One Realty is a trusted Hilton Head Real Estate Agent with decades of experience under his caliber.
Charles Sampson is a multi-awarded Hilton Head Real Estate Agent who can help you navigate the changes in mortgage interest rates and inventory in Hilton Head Area. Whether you are buying your first home or selling your starter house in Hilton Head, we will provide you options that better fit your situation and preferences.