What to Know About Buying a Home in 2020

Are you a first-time homebuyer looking to find a place you can call home? Buying a home can be a fun but challenging experience. What with the constantly shifting market and unpredictable financing environment.

House Buying 101 For 2020

1. It's Going to Be Harder to Find a House In 2020

Real estate experts and insiders have predicted a more competitive residential real estate market in 2020. This will be occasioned by rising interest from millennials and financial institutions selling mortgage and related products. Less residential houses and increased demand will mean scarcity, higher prices in some areas, and more money in the market.

2019 saw a sharp decline in the number of affordable housing units in most states across the country. This trend is bound to continue this year. Realtor.com has already predicted a deficit in the number of entry-level housing units in 2020.

2. Be Open to New Ideas and Innovations

You must have come across the minimalism and tiny house design waves in the past five years or so. Innovations have made it possible to build smaller, more efficient houses that are cozy and appealing.

Think about buying a home that incorporates these new design trends. You might end spending less for more and getting a house that makes you smile. Other innovations, such as building with shipping containers and recycled materials, should also make it in your home wishlist of 2020.

3. Look for Houses in Non-Traditional Suburbia and Localities

Everyone who wants a high-end property in California is probably thinking about Beverly Hills and similar neighborhoods. However, is that the best decision?

Most traditional suburbs and localities in California, New York, and Miami have recorded insane price jumps in recent years. If you are looking for a house in 2020, you are better off exploring less popular locations in and around the major cities. In fact, it has become a trend for entry-level house buyers to move to smaller cities and suburbs to find good houses. According to a recent CNN survey, affordable locations to buy a home in 2020 include places like South Carolina, Dallas-Fort Worth, and Charlotte.

Median house price estimates by Zillow.com show that you have a better chance of finding a good affordable house in smaller localities like Cumberland, Hagerstown, and others around major cities.

The bottom-line? You should be open to moving away from major cities if you want a good house deal.

4. Take Advantage of Low-Interest Rates

The US economy is definitely doing well. There is a lot of money floating around in the market. If you wish to take a home loan, 2020 is the best year to do so as interest rates will be falling.

First time home buyers will find 2020 challenging as they look for their dream home. On the one hand, scarcity in the entry-level segment will make it harder to find a good unit. On the other hand, a favorable economy, low interest rates, and innovations could tip the scales in their favor.

For more information visit: https://www.unison.com/article/down-payment-guide-for-first-time-home-buyers#common-first-time-home-buyer-mistakes