Are you wondering if this is the right time to buy a house in the Hamilton real estate market? Given the current situation, it’s important to exercise some care before you make any significant financial investments. You’ll have to take several factors into account. For instance, what’s your credit score like? What are home price levels like at the moment? In this article, we will be discussing whether you should buy a home in 2020 or put off the decision for later.
- Check Your Credit Score
Qualifying for a home loan isn’t easy at the moment. The Coronavirus pandemic has delivered significant impacts on the Canadian economy and banks do not have high lending capacity at the moment. With mortgage deferral programs underway and people taking money out of banks, the qualification process has become increasingly stringent.
However, if you have a good credit score, then things can quickly turn in your favour. Having a good credit score reassures banks that you can pay your debts on time and do not default on pending payments. This can reduce their risk and improve your chances of getting approved for a home loan. A good credit score won’t just make homeownership more affordable for you. It will also let you enjoy other benefits such as lower interest rates, flexible payment terms, etc.
2. Do You Have Any Existing Debt?
Before you apply for a home loan, it’s important to evaluate your existing debt. You must make sure your monthly income is sufficient for managing your current debt as well as any new financial obligations that you choose to take on.
Having less debt will also make it easier for you to manage the expenses that come with buying a home. You’ll have to evaluate costs like monthly maintenance and repair costs and other unplanned costs such as new appliances and furniture.
Make sure you have a substantial amount of money saved up before you commit to buying a home in the current economic environment. This money can be directed toward making a down payment on the house and managing costs. On average, we suggest having enough savings that can help you manage at least 3 to 6 months of living expenses.
3. Do You Have a Steady Job?
When it comes to buying a home, having a stable source of income is absolutely vital. You don’t want to take too many risks if you don’t have a stable job to fall back on. With so many companies laying employees off, it’s important to re-evaluate your job security. If you have been associated with the same company for several years now and enjoy a good reputation along with job stability, then you can leverage the current Hamilton real estate market conditions and buy a home.
However, if you are not entirely confident about the stability of your job, then it’s best to steer clear of buying a home right now. You can wait another year or longer to see how things turn out before proceeding.
4. How’s The Real Estate Market Looking?
Once you have evaluated your financial situation, it’s time to take a closer look at real estate trends in your area. If you are looking for a home in Hamilton, then we suggest getting in touch with a realtor with experience in the Hamilton real estate market.
As per the latest reports, the average home price in Hamilton is $595,105. There were 583 new listings in April and the average number of days a home is staying on the market is 24 days. Currently, the market is favouring buyers over sellers. With few active buyers available, homeowners are willing to consider every offer that comes their way in order to make a quick sale.
Of course, you’ll have to deal with a few challenges such as being unable to tour a home in person and having to rely on live chat videos to take a closer look at the property.
Make sure that your real estate agent is able to conduct a live chat tour to show you every nook and cranny of the home you’re about to purchase. Avoid relying too much on pictures or 3D tours. These can be manipulated and may not show you every aspect of the house.
Wrapping It Up
If you want to buy a home in 2020, then make sure you have a good credit score, a stable job, and a substantial amount of money saved up. If you are unsure about one or more of these factors, then it may be wiser to wait until next year before investing in a home. You can also get in touch with a real estate agent in the Hamilton real estate market to gain a better understanding of the situation.