If you are in the market for a new home in 2019, you may wonder whether you should rent or purchase your next property. The housing market is complex. Knowing the 2019 housing market predictions, assessing your finances, and understanding the signs of a good purchasing market can help you make smart decisions.
Signs of a Solid Buyers’ Market
Certain indicators of a strong housing market suggest purchasing a home is a smart decision. Understanding these indicators can help inform your decision.
One sign of a strong buyers’ market is low interest rates. People with good credit can receive favorable mortgage rates, according to Forbes. In addition, prospective homeowners should pay attention to the buyers’ market. Lots of homes available for purchase and little competition from other prospective homeowners will allow you to get a good deal on a home.
The 2019 housing market is expected to bring significant changes, including slowing growth of home prices and changing mortgage rates, according to U.S. News & World Report.
Some facts and expectations about upcoming housing market trends include:
- With a rising interest rate market and potential abundance of housing inventory becoming available – housing prices are expected to settle a bit in 2019 and there has never been a better time to buy.
- Because consumers are buying properties at a slower rate, home price increases are slowing. The number of days homes are on the market is rising. While selling a home can go through some delays in a market like this, buying a home can be that much more convenient.
- Increased income and lower unemployment rates allow prospective buyers to afford more.
Calculate Your Financial Situation
Before you consider buying a home, you should assess your financial situation. This will help you determine if it makes sense for you to rent or buy in 2019. First Federal Bank Mortgage has an interactive calculator that can help inform you when weighing your options.
In addition to taking inventory of your finances, you should also know the additional costs of homeownership. Payment does not begin and end with your mortgage. Generally, you will also pay for:
- Closing costs
- Maintenance fees
- Realtor fees
- Mortgage insurance
- Homeowner’s insurance
- Homeowners association fees, if you buy in an area covered by an HOA
- Property taxes
- Mortgage interest
- Orientation fees
The Forbes Prediction
Interest rates may be high in 2019. According to Forbes, rising interest rates and slowing purchase rates will be trends in the coming year. Times like these usually have some hidden opportunities for those who wish to buy a home. Though interest rates have risen, market prices have dropped. Higher interest rates on a cheaper house may allow buyers to get more house for their dollar if they can find the right deal. If you are a first-time prospective homeowner, you have solid finances, or you can afford the hidden fees, purchasing a home is the right decision
Making the right choice when it comes to purchasing or renting is more accurately determined on a case-by-case basis, depending on individuals’ financial circumstances and the local real estate climate. Make smart financial decisions in 2019 and contact the home mortgage experts at First Federal Bank Mortgage to discuss your homeownership options.