If you’re looking to buy a home this year, you’ll want to know all you can know before diving in. Here’s what to expect when it comes to the housing market and getting a mortgage in 2020.
With rates low in 2019 and expected to stay low or even move lower, the 2020 housing market is an ideal environment for buyers. Thanks to these enticing rates, the buying season is extending – starting earlier than usual as buyers move to snag low rates.
Since December, there has been a 40% increase in applications to purchase newly constructed homes. With 2019’s shortage of homes for sale, home construction is on the rise to catch up with demand. As more homes are built, the market that was so desperately in need of inventory should see a strong season of home buying.
Technology has been relentlessly growing and improving for years. As a result, the process of attaining a mortgage will continue to be changed by advancements in technology. Digital improvements will make the mortgage experience easier and quicker, which will be very attractive to millennials and first-time home buyers. Thanks to low rates and technology that create a streamlined mortgage process, we should see a favorable environment for buyers who have been holding off from purchasing their first home due to high home costs and a competitive market.
Home prices are expected to appreciate by about 5.6%, up from 2019’s 3.5% appreciation. This is great news for sellers and anyone looking to refinance. Homeowners looking to take advantage of this opportunity who aren’t looking to sell can utilize the increased equity to go for cash-out refinancing in order to pay off debt or invest in home renovations.
2020 will be a year of change and shifting trends when it comes to housing and mortgages. Driven by expansions in technology at a time when younger, more tech-savvy buyers are entering the market, the mortgage and real estate landscape will create an advantageous time for first-time home buyers. Buyers and sellers alike may be able to thrive if they keep these trends in mind and make smart decisions.
If you’re looking to buy a home or refinance your existing one in 2020, contact us today to find out how you can get started.