Should You Buy a House in NYC in 2020?
Even though it seems like a strange moment to buy a house in NYC in 2020, it's definitely a period that offers some unexpected advantages.
In light of recent events, many people are wondering about the same thing. If just like them, you are asking yourself if you should buy a house in NYC in 2020, the answer may not be so simple. Given the uncertainty, even experts can not agree about the predictions of the real estate market situation in the near future. While the renting situation is definitely going through a hard period, buying may still prove to have more sense. Of course, it will depend on several crucial factors regarding the availability and your financial situation. But for those who are seriously considering buying a house, it might be a good year to do it.
Things to consider if you want to buy a house in NYC in 2020
Even before Q1 of 2020, the property market was sensing some slow declines. Now, these declines are more significant because the economic situation is not so stable at the moment. Nevertheless, it might be a good time to be a buyer because it opens up more opportunities. For example, the Upper East Side is where many people move to because it's one of the most affluent neighborhoods in New York City. Now you have a chance to do the same. Some people were already making arrangements over the last few months before "the storm" hit the world.
Many industries are putting themselves on hold which causes notable financial instability. As a result, deals are being canceled, prices are going down, and there is hardly any competition at this moment. Especially in NYC. Will it continue to be like this in the next few months - nobody is actually sure. So, here is a couple of factors you need to consider in order to make a sound decision:
- Your financial situation should be firm
- The diversity of the housing market
- The competition in 2020 regarding real estate market
- It might be difficult to tour the houses
Your financial situation should be firm
It makes a lot of sense to explore the available housing option at this hour. But, you should prepare yourself since the financial situation is delicate, at least. Worldwide, people are losing jobs, some industries are stagnant, others are managing with alternatives like working from home, etc. To buy a house at this moment you should have a solid financial situation. And either a lot of savings or high income that will not be threatened by recent trends.
- To qualify for the mortgage, you need to have a good credit score.
- Your debt-to-income ratio should be as low as possible.
- You'll need savings to cover the expenses of potentially increased down payments.
- As a precaution, you will need money to cover several months of essential living expenses including housing costs and repairs.
- To avoid any surprises in the future you need to be sure that your job is stable.
If you are relatively well off, then you should be able to find a good property without much trouble. People are cautious anyway, but 2020 rises this to completely another level. Neither buyers nor sellers are willing to risk much when it comes to money. Just make sure to hire one of the reputable moving companies in NYC, like Dynamic Movers, to avoid unnecessary costs.
The diversity of the housing market
As for the first half of the year, many houses are being pulled off the market. Currently, you may not be able to find everything you imagine but it's worth looking for. Those that remain have a lower price, probably because some people are considering moving our of the city. On the other hand, if you are looking to find a house in suburban parts, expect to see the opposite.
For the second half of the year, the situation might change. It's not certain, but it might happen. The prices will probably higher than now, so it's time to rethink your willingness to invest right now. On the other hand, it may take longer for the real estate market to stabilize. It may happen that housing options in NYC will drop even lower. There is an ongoing debate among experts about what will happen, but nobody is sure. So, to wait, or to buy now? It's completely a personal choice.
The competition in 2020 regarding real estate market
This year will be infamous because of how it started. But from the buyer's perspective, it's providing a good opportunity to reevaluate your options. Mostly, because you will have almost unnotable competition when searching for available houses. At least, according to real estate agents, in the city. It might be a completely different situation in the suburbs. Simply, a percentage of residents are considering moving away from the city crowd into more private surroundings. Whether it will cause a new wave of relocations, no one is sure. Will it cause a chain demand and an increase in prices? It remains to be seen. But if you are considering buying now, you should not hesitate for a single second.
Additionally, you should not hesitate to negotiate the price. Since there are opportunities out there that might not exist in the future, don't give up. Search for the houses that are on listings for a longer period, and sellers should be willing to lower the price a bit, giving you the opportunity to save, and for them to accomplish the deal.
It might be difficult to tour the houses
For a long time, live tours were the best way to explore the house in NYC you are considering buying. This way, you can see it with your own eyes and ask any question you want. However, when considering to buy a house in NYC in 2020, you should adapt to new trends. Even though it's a forced trend, considering the current situation, there is a chance it will last for some time more.
Namely, it's virtual tours we are talking about. Most agents and sellers are conducting their tours remotely using technology. In some way, it presents a risk to buy a house you have never been in. From another point of view, it eliminates the need to travel just for the tours if you come from afar. In the future, the situation will go back to the way it was. In some parts of the country, it already did. If you are a serious buyer, this shouldn't stop you.
Even though it seems like a strange moment to buy a house in NYC in 2020, it definitely has some advantages. In the time where technology plays a big deal in our lives, few adjustments here and there are nothing new. As a buyer, you have a unique opportunity to become a proud owner of a house of your dreams.