4 Surprisingly Good Reasons Why Now is a Good Time to Buy a House

According to Global Property Guide, 2020 was an amazing year for the U.S. real estate market. House prices for existing homes went up. Prices went up in every major city. By just about any metric, the market was on a tear.

For folks who are actively looking and others who are thinking about buying a house, it all begs the question:

Are there any practical reasons to be looking at houses right now or is all this talk just another attempt to get sales?

Whether you're dipping your toe into the market or you're just trying to read the room, here are 4 reasons why now is a fantastic time to buy a home.

Reason #1: Low Interest Rates

Normally, interest rates and the latest moves being made by the Federal Reserve aren't exactly an interesting topic of conversation.

But a big part of the reason why interest rates were making news headlines in 2020 is because interest rates weren't just low. They were, are, and will likely continue to be near zero for the next couple of years.

And if you're buying a house, over the course of a multi-decade mortgage, that lower interest rate could save you thousands of dollars.

Buying a house now makes it possible for you to lock in a historically low interest rate on your mortgage.

Reason #2: Housing Prices Will Likely Just Get Higher

It goes without saying that 2020 was a doozy of a year.

From work meetings to the Olympics, just about everyone in every industry was forced to make major lifestyle changes.

The uncertainty around the job market and the different stay-at-home orders seemed like they should have brought the real estate market to a standstill. But not only were real estate foreclosures at a 16-year low in 2020, but USA Today published a recent article talking about how housing prices are expected to keep going up in 2021.

If you don't want to get caught in that price upswing, this is an excellent time to start monitoring your credit score and getting your finances ready for a future mortgage application. Between the lower interest rates, the rise of remote work, and increasing demand, housing prices will probably just keep going up from here.

Reason #3: Many Would-Be Buyers May Be Planning to Wait and See

Within the stock market, traders are often given a single piece of advice:

Buy low and sell high.

Although this seems like common sense, a lot of people panic during trading hours and get hung up on the speed with which a stock can move up or down.

Believe it or not, it's a similar deal in real estate.

Many people aren't sure about what the post-COVID economy is going to look like. Others want to see what else might hit the housing market once unemployment benefits start running out on a larger scale.

If you want in on the buying market, this is a great time to snap up your dream home before the real estate market really starts heating up.

Reason #4: Selling Your Home Might Not Be as Hard as It Seems

Picture this.

You've found the perfect home. You've put in an offer. And the seller is giving you the keys next Tuesday.

Normally this would be a reason to celebrate, right?

But this time it isn't.

With your "old" house languishing on the market with no buyers in sight, this bit of news now means that you're stuck paying for two mortgages instead of one.

And that is no one's idea of a good time.

If this sounds like your worst nightmare come to life, then you should know that the real estate trends that are making it possible for you to purchase a home are also really helpful if you're a seller.

A lot depends on the dynamics of your local real estate market, but if houses could sell like hot cakes in 2020, odds are good that your home will find a buyer sooner rather than later in 2021.

Conclusion

Next to "Location, location, location!" It seems like "It's a buyer's market!" is every real estate professional's favorite phrase.

As hard as it may be to believe this time, however, between the interest savings and the great prices, there's a lot for home owning hopefuls to look forward to in the 2021 real estate market.