Undoubtedly 2020 was a challenging year. A global pandemic with economic recession has caused pain to many. However, it also encouraged more Americans to reconsider the meaning of “home.” This search for a place better equipped to fulfill ours needs, along with a record low mortgage Estimates, exploded the requirement for home purchases.
This increase in demand, in addition to the severe scarcity of homes for sale, also caused more supply wars and so have home prices quite drastically. So some have become cautious about buying a home now.
The truth is, although homes have been much appreciated 6.7% over the last twelve months, the cost of buying a house has actually dropped. This is largely due to mortgage rates falling by a full percentage point.
Let’s take a look at the monthly mortgage payment on a $ 300,000 home a year ago, and then compare it to that same home today, after it was estimated at 6.7% to $ 320,100:Compared to this time last year, you actually save $ 87 a month buying that home today, which equates to more than a thousand dollars a year.
But isn’t the economy still in recession?
Yes it is. That though can make it the perfect time to buy your first home or move up to a bigger one. Tom Gil, a Harvard-trained negotiator and real estate investor, recently explained:
“When volatile assets face recessions, strong assets, such as gold and real estate, thrive. Historically speaking, residential real estate has improved compared to other markets during and after recessions.”
“Despite the risk of volatility in the housing market, many studies have shown that home ownership leads to greater wealth compared to renting. Tenants do not capture the wealth generated by house prices, nor profit from the share gains generated by monthly mortgage payments. a form of forced savings for homeowners. “
Content previously posted in Keep Current Things