Events in the world can affect the market rates for real estate. Buyers and sellers do have to take note of the economy before making a decision. If you are looking to buy or sell a property in New Jersey, you may be unsure when’s the optimal time to take action. Fret not, here are four crucial real estate questions answered to make things easier for you:
Will the President Election Impact Real Estate?
Presidential elections are always a period of confusion for everyone. Competing parties will be making big statements and promises about the nation under their possible leadership. This includes making declarations about the economy, where political parties on both sides contradict with one another. As a result, potential buyers and sellers will be confused and unsure of which party to trust. Well, what you need to know is it will be better to buy or sell the estate during the elections as compared to after. Due to the market’s current strength and historic lows, you will reap more benefits if you act early.
Is A Recession Around the Corner?
The outbreak of the Coronavirus (COVID-19) has led to massive global uncertainty to people and the market. As of 19 March 2020, the 30-year fixed mortgage rate has increased from 3.36% a week ago to 3.65%, which is the highest rate since January. However, it is still considered one of the lowest in history. This is caused by volatile swings in the stock markets and government spending on cushioning and tackling the Coronavirus situation. It is hence challenging to decide if there will be a recession, and researchers at First American Financial Services believes that the recession is unlikely to cause a downturn in the housing market and instead, the housing market can aid the economy to recover from the recession.
What If I Buy A Home and Prices Depreciate?
Waiting to purchase a home can be disadvantageous. Buyers should seize the opportunity to make a purchase decision fast as the mortgage rate will most likely increase as time goes on.
Should I Take Advantage of Interest Rates Now or Wait?
As mortgage rates are low but increasing as time goes on, the right decision is to seize the opportunity and take advantage of the interest rates now. If you are a buyer and continue to wait, there is a high chance that you may pay more for the same house.
The best solution is to consult a real estate agent who will be able to offer you advice on the current housing market situation and assist you in finding a good deal for your house. With an impressive record of satisfied clients and experience, Joshua M. Baris will help you get what you want. If you have more questions about real estate, you can visit our blog to find out more or contact Joshua at NJLux today!