Knowing that you’re ready to buy your first home is exciting. But the process itself can be intimidating. If you’re throwing around the idea of purchasing a new home this year, one of the questions you may have is whether or not it’s a good time to buy.
2021 is an unusual year to say the least. The coronavirus pandemic did a great job at shaking up the real estate market last year and caused a lot of changes. Among other developments, mortgage rates plummeted, many of the homebuying processes went online in order to ensure social distancing, and buyers began seeking more spacious homes in the suburbs. Many of these trends are continuing to hold strong in 2021 and may even persist in the years following.
The good news is, many of these changes work in favor of new homebuyers. So, if you’re considering buying a home, 2021 could be a great year to do it. Here’s why.
First Down Payment Tax Credit
One of the major hurdles that aspiring homebuyers must overcome is saving enough money for a down payment. When you’re renting, it can be hard to set aside funds for the future when you have expenses that need to be attended to in the here and now. President Biden’s proposed housing plan could make it easier for buyers to overcome this challenge. The proposed plan includes up to $15,000 that first-time buyers can use towards a down payment.
Low Mortgage Rates
As a general rule of thumb, mortgage interest rates tend to fall during economic recessions. That’s why, when the economy was impacted by the coronavirus in 2020, mortgage rates dropped exponentially. In fact, on more than one occasion, they hit record lows. Right now, mortgage rates are still low, but they may increase as the economy recovers. If you’re thinking of buying a home, you may want to act sooner rather than later. Of course, this all depends on your financial situation.
More Buying Options
In December of 2020, the number of homes for sale in the United States reached an all-time low. However, experts predict that as the market normalizes, buyers may have a wider selection of homes to choose from. The number of new listings and new construction homes is expected to increase as the year goes on.
Speak to an Expert
Buying a home is a big decision and everyone’s situation is different. The best way to know if now is a good time for you to buy is to chat with an expert who can give you advice and help you explore your financial options. Mortgage Solutions Financial is here to help. Call today to get in touch and take the next steps towards homeownership.