BOB UPTON, Realtor®, CBR's Blog
Winter season is gone; homebuyers are warming up to get the best house available. It is not out of place for several questions or thought to run through their mind. Questions like - is 2019 a good year to buy a home?
The good news is that 2019 is a critical year for housing. Below are some reasons to consider this year a good year to buy a home:
Mortgage rate decreased at the end of 2018
One of the reasons why we think the year 2018 as a good year for housing the reduction of mortgage rate towards the end of 2018. You will notice that the rate increased during the first half of the previous year then it decreased towards the end of the year. Now, the mean rate for a thirty-year fixed mortgage in the first week of January was 4.51 percent.
Some home buyers took advantage of this reduction in mortgage rates by purchasing during the early months of 2019. It is a wise decision to invest at this time because the price could increase as we move further into the year.
Prevalence of price reduction among sellers
Another convincing reason why 2019 is a good year for housing is that prevalence of price reduction among home sellers. Years back, home sellers took advantage of the competition among buyers. The case is different now; more homes on the market means the overabundance of buyers does not exist any longer. Therefore, 2019 is expected to be a year of significant price reduction in the real estate market.
There are more negotiating leverages for home buyers in 2019
A lot of home buyers have more negotiating leverage in 2019. There is a change taking place in many real estate markets all over the country. Sellers are looking for ways to attract buyers because of lack of patronage. It is evident that the real estate market is on the decline, and there are data available to bolster that.
Home buyers in 2019 can make use of this opportunity; this period is the best for housing as they could have more negotiating leverage when compared with buyers who purchased several years back.
The unemployment rate is low
The reduction in employment is one of the factors that boost the financial means of buyers and make them confident enough to buy a house. A stable source of income will enable buyers to stay faithful to their monthly mortgage payment. The unemployment rate of the United States of America was down to about 3.7% as of November 2018 with the addition of more than 155,000 jobs in that month.
For more information about the buyers market in your local area, talk to your real estate agent for the most recent numbers.