We don’t think anyone would disagree with stating this year has been unexpected, difficult and confusing for most everyone… but especially for prospective homebuyers. Those who planned on 2020 being the year they jumped headfirst toward their dream of homeownership may now find themselves doubting that idea altogether. Fear surrounding another housing crash like that of the last recession still lurks, however all signs are still pointing toward a positive housing climate. 

The Misconception
While the National Bureau of Economic Research has announced we’re in a recession, that does not equate to another housing crash. Unlike the last time we saw an economic downturn‒during times of frequently overbuilt stock and high-risk mortgages‒real estate is set up to help the country out of economic hard times, not into them. New guidelines have been introduced since then, put in place to keep real estate reliable and strong. 

The Bigger Picture
In order for real estate to make that positive economic impact, consumers must play their role and boost the number of homes on the market. Check out this infographic highlighting the average economic impact of just one single home sale in the U.S. from Keeping Current Matters:

Thanks to declining inflationary pressures, historically low mortgage rates have increased affordability for homebuyers immensely. This means prospective homebuyers can afford homes with larger pricetags than in the past. If you’re sitting on the sidelines, either as a potential homebuyer or home seller, now may be a great time to jump in. 

The Key to Success
As mentioned, low rates combined with low inventory makes for a competitive market. This puts sellers in a great position to sell fast and for a fair price. It also means buyers should be pre-approved upfront. Having a fully-underwritten pre-approval in hand shows you’re a credible and serious buyer, increasing your odds of the sellers choosing you to be the next lucky homeowner.

Between home equity and appreciation, low interest rates and the general state of our housing market… We are seeing positive signs all around. When you’re ready to play your part in boosting our economy, the Cambria Mortgage team can take a thorough look at your unique situation and be able to tell you your eligibility with certainty. Visit CambriaMortgage.com or call 952-942-0110, we’re here to help! Pandemic or not, 2020 can very well still be your housing year. 

SOURCES:

A Remarkable Recovery for the Housing Market. (2020, July 20). Retrieved July 30, 2020, from https://www.keepingcurrentmatters.com/2020/07/21/a-remarkable-recovery-for-the-housing-market/

Smialek, J. (2020, June 08). The U.S. Entered a Recession in February. Retrieved July 31, 2020, from https://www.nytimes.com/2020/06/08/business/economy/us-economy-recession-2020.html

Where Will the Housing Market Go From Here? (2020, July 21). Retrieved July 31, 2020, from https://www.keepingcurrentmatters.com/article/where-will-the-housing-market-go-from-here/