Your family is getting bigger and you need a new house. 2018 was too much of a seller’s market and you’re holding out for 2019. But will 2019 be any better?
Early indications give a mixed signal. If the current economy remains strong in 2019, that will lead to continued rate increases and high demand. So, you may want to buy early in 2019 before rates and home prices continue to climb. According to a 2018 Zillow Home Price Expectations Survey, most experts don’t see a shift to a buyer’s market until 2020. The study also indicated, however, that the Midwest could see a shift by the end of 2019.
So how should you proceed with purchasing a home in 2019 to help ensure your investment is safe? Here are a few suggestions:
Look in the first part of the year. Buying in the Spring and Summer is when most homes are bought and sold, creating a competitive market and high prices. Starting your search earlier in the year will net better results. A 2017 report from Tulia shows that inventory for starter homes increased by 7 percent in the fall months, which resulted in listing prices declining 4.8 percent in the winter.
Create a budget and hold to it. According to a 2018 Zillow Consumer Housing Trends Report, 27 percent of Gen Z and Millennial buyers go over budget on their home purchases.
Try to save money in advance of purchasing. A good down payment will help build an equity cushion and protect you if there is a downturn in the economy. But if you don’t have the savings for a down payment, not every loan requires 20% down and there are more affordable options available .
If you get turned down for a mortgage, don’t get discouraged. There are a number of mortgage companies that have programs for borrowers that don’t fit standard loan guidelines or have experienced credit challenges.
It’s hard to predict how the economy and housing market will progress in 2019 and into the next decade but it’s advantageous to staying informed and get an early start in 2019. Plan now and happy hunting!
For more information on getting a mortgage loan, contact the experts at NASB at 855-465-0753 or click here.