3 Opportunities: Buy, Sell & Investing in 2020

With a brisk start to the New Year, here is why we think you should consider Buying, Selling or Investing in 2020:

Buying: Low Interest Rates
With interest rates back in the 3.5% range, a historical low, the long term costs of buying a home are very low. A 1% shift in interest rates will change your buying power by a full 10%. So, if you're shopping for a home with a budget of $600,000, and rates rise by 1% back to where they were in January 2019, you'll see your budget decrease to $540,000 for the same monthly housing payment. While we expect rates to stay low for the coming months, we know they will rise back to the 4-5% range and perhaps higher over the coming year or two.

Selling: Low Inventory
The very low inventory we're experiencing right now is creating a strong sellers market with competitive offers, favorable terms, and escalating prices. This low level of inventory will likely diminish by June to August, where it will still be a good time to be a seller... just perhaps not quite a favorable as the next few months. Strategic sellers looking to move up, change neighborhoods or downsize may use these advantages to time the market to get the best for their sale, while being right in time for the uptick in inventory and choices as a Buyer.

Investing: Rates + Patience = Profit
While finding great deals in a Sellers market can be tough, they do exist. Finding them requires patience, an eye for opportunity and robust analytics. However, today's interest rates and rental rates provide the potential for long term profitability.

Call us with your questions on how you can take advantage of these market opportunities!