- From a financial perspective, now is a great time to buy a house, especially as mortgage rates hover at an all-time low.
- Investing in real estate can increase your wealth even if the economy is in a recession.
- Do you still have questions about investing during a recession? We’d be happy to give you the answers you need!
Buying a Home… During a Recession?
Are you considering buying a home right now but aren’t sure if doing so would be a smart financial decision? Many Americans who have been impacted by the pandemic and current recession have come to realize that they are in need of more space or are looking for amenities that their current house cannot provide. However, buying a home now actually is a good idea—here’s why.
How’s the real estate market these days?
What does the market look like? Can I afford a new home during such an unprecedented time? These are some common questions that run through many potential buyers’ minds. The good news is that financially, now is an excellent time to buy a home.
Right now, those invested in the real estate market are buzzing because mortgage rates seem to keep dropping every day. Low mortgage rates are a wonderful asset to have when purchasing a home. While it is true that prices have increased due to the high demand for homes, many homeowners are still saving on their monthly mortgage payments thanks to record-low interest rates. This can aid homeowners as they accumulate wealth without breaking the bank.
But aren’t we currently in a recession?
While the economy may still be in a recession, real estate is considered a hard asset. That means it is a resource with a fundamental value. Hard assets can assist those who are suffering during a recession. We can also look back to previous years and see that residential real estate has done well in comparison to other assets during and after a recession.
There are also a number of financial benefits that come with being a homeowner. It has been proven that homeowners accumulate more wealth than those who rent. If you rent, you are unable to obtain the equity that comes as your home appreciates. Renters can also lose out on gains that come with monthly mortgage payments. These payments can be a type of forced savings, which leads to increased wealth over time.
Now is the time to invest!
Home prices still continue to rise as buyer demand increases. If you are considering becoming a homeowner and buying your first home, now is a great time to take action. The same goes for those looking to move to a new home that better fits their needs. And as we head into 2021, some experts believe that mortgage rates are set to rise again. Should this occur, it will become increasingly expensive to invest in a home.
Interested in Buying a House but Not Sure Where to Start?
If you are looking to capitalize on today’s low mortgage rates and find a home that suits all your needs, reach out to the Jim Dolanch Team today! With plenty of experience and knowledge in the Pittsburgh area, our agents are always on hand to help you find the house that will make you feel at home. Please contact us with any questions regarding the current housing market or buying a home for the first time.