What Do Higher House Prices Mean For Buyers and Sellers In 2020?

What Do Higher House Prices Mean For Buyers and Sellers In 2020?

2020 has been challenging for the real estate housing industry.  We all know that the real estate industry has been in a crisis due to the pandemic. There have been many fluctuations in the price and value of housing properties. Now, the median price for houses has spiked up to $320,000. Does the rest of

2020 has been challenging for the real estate housing industry.  We all know that the real estate industry has been in a crisis due to the pandemic. There have been many fluctuations in the price and value of housing properties. Now, the median price for houses has spiked up to $320,000. Does the rest of 2020 show a similar fate for real estate? What do higher prices mean for the buyers and sellers? Let us find out.

For Sellers

With an increase in housing prices, sellers can generate a better profit. However, the rise in the price will not necessarily turn the tables in your favor. Most buyers feel priced out of the market. This has left fewer buyers in the market, and so you get fewer offers for your home.

Stay Ahead In the Competition

With limited buyers, you experience immense competition in the market. In this situation, you would want your home to stand out from similar ones near you.

You have to prepare your home to attract potential buyers. Do everything that is necessary: repair any faulty areas or cracks, clean your house, and make it more inviting.

You can also work with an estate agent to help you market and list your house at a better price.

Wait For the Right Offer

While you may be eager to sell your house, do not jump at the first offer. It is important that you stay patient and wait for the right offer. Some buyers will try to start with a low number. If you are in no hurry to move, wait for the offer with the most profit. The less desperate person always has the upper hand in negotiation.

For Buyers

 Buying a home in an expensive market is not easy. You first need to sit back and find out how much you can really afford. You should calculate how much of a monthly payment your budget could handle.

Stick to Your Budget and Stay Patient

Once you have a budget, it is crucial to stick to it. You have to stay patient and should not rush into a purchase above your budget. You may feel pressured to buy a nice house after seeing many competitors plucking the good homes from the market. However, that does not mean you buy a house that does not make financial sense to you.

If you cannot pay off 10-20% in a 15-year fixed-rate loan, you cannot afford that house. If you make less than a 10-20% down payment, it will result in heavy monthly mortgage payments.

Keep Saving

If you cannot find a house within your budget in the current market, worry not. You can prepare yourself to buy the house of your dreams only if you wait. You should start saving for a down payment so that you can buy a house next year. Staying patient and motivated is worthwhile for you to get a nice house within the next 12 months.

Sacrifice Some Wants

Considering the current market situation, you cannot get everything you want without paying a massive amount. Buying a house under budget is all about balancing your needs and wants. If you cannot afford to buy the house you want, you have to cut out some ‘must-haves’ and ‘nice-to-haves.’

We suggest you find the least expensive house in the best neighborhood you can afford. You might find a gem in a less popular area that you were not expecting. This would require you to stay patient and make more efforts. However, doing this is worthwhile if you cannot wait until the next year to buy a house.

You can get a nice house in the best area you can afford. As your income and savings will increase, you can upgrade the house over time.

Get in touch with an estate agent who can help you find the best neighborhood according to your budget and lifestyle. The good news for the buyers is that the mortgage rates are super low this year. It is still better that you go for a conventional 15-year fixed-rate mortgage.

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