2020 was an extremely interesting year for real estate prices across the country. Although some states, like Florida, saw home prices skyrocket amidst the pandemic, many locations experienced quite the opposite. The end of 2020 saw home prices decline in many areas, thanks to economic uncertainties due to the health crisis. Now, into 2021, the market is continuing to level out, which can be extremely helpful to those looking to buy a house on a budget!
When it comes to saving money to buy a house, now is the time to take advantage of the current climate. Though prices may return to the higher end of the spectrum soon, at the end of 2020 the mortgage rates were quite low, meaning mortgages or loans taken out can still have significant savings in the long run. Additionally, late 2020 and early 2021 sees homes in many areas listed at a fraction of their price form before the pandemic. With the overall trend of movement toward lower prices, savvy buyers can see a savings of up to half of what they may have paid for similar properties the year prior.
It is also important to consider that when saving or budgeting to afford a house, there are other costs associated outside of the price of the house. Buyers must consider typically added expenses such as closing costs, home inspection fees, and taxes. Though buying a house offers the allure of investment, prospective buyers should also consider the rates of return, repairs, and repairs related costs associated with certain properties.
Prices may be likely to increase in the next few months, as people look to buy houses in more affordable areas. Though this may kickstart prices in many towns to higher than they were in late 2020, there are still numerous ways to save money when looking to purchase a house, such as taking advantage of the current low mortgage rates, seeking out low rates of return, researching price histories, and taking proactive steps to save for large purchases. With an eye toward affordable potential and knowledge of the current market, buyers can find the right option while still saving for what is likely the most expensive purchase of their lives.