This year has been difficult for just about everyone, but if you were (or still are) thinking about buying a downtown Boston condo in 2020, you might be feeling more than a little overwhelmed. An ongoing pandemic, the subsequent recession, and general uncertainty have forced many Boston real estate buyers to put their real estate dreams on hold. However, despite all these potential obstacles, owning a high rise condo or a Beacon Hill condo for sale is still very attainable.
Buying a condominium is a huge decision, and it’s one you shouldn’t make without careful planning. Unfortunately, there’s a lot of fake news out there regarding the home-buying process and the downtown Boston real estate market as a whole, especially as the nation continues to navigate an unpredictable presidential election year.
Still unsure about buying a downtown Boston condo in 2020? Here are four of the most common myths that deter today’s buyers—and why you shouldn’t believe them.
On the surface, this myth may seem true. Towards the beginning of the year, a majority of sellers chose not to list their homes, while many buyers didn’t feel comfortable moving during the quarantine. This caused the national real estate market to experience an unusual spring slump. The good news is that the market has made substantial progress since the beginning days of Covid-19—actually, Boston real estate has become one of the most stable investments you can make in 2020.
Pent-up buyer demand has helped the market recover in record time. In fact nationally, the number of mortgage applications closed sales, and pending sales are up by double-digit percentages compared to last year. And if you’re still hesitant to buy during a pandemic, you’ll be happy to learn that most agents now offer virtual tours and have put social distancing measures in place to keep clients safe.
Does it seem like Boston’s real estate is getting more and more expensive these days? You aren’t just imagining things—home prices are higher than they were last year.
While this may seem like bad news for Boston condo buyers, you shouldn’t be deterred by rising prices. Historically low-interest rates have helped to make homes more affordable, even as they continue increasing in value. Although a small change in interest rates may not seem drastic, it can actually save you tens of thousands of dollars over the lifespan of your loan.
You’ve probably heard that you need at least a 20% down payment to buy a Midtown condo or a Boston Seaport condo for sale. While there is merit to putting down as much as possible, you can still purchase your own place with as little as 0% down by using the right loan.
According to a recent study by the National Association of Realtors, the median down payment for all buyers in 2019 was just 12%, and first-timers only put down an average of 6%. You might also qualify for an FHA or VA loan, which offers down payments as low as 3.5% or 0%, respectively.
The average American has accrued $38,000 in personal debt, excluding home mortgages. Even if you don’t owe quite that much, any kind of debt or a low credit score can seem like a pretty big roadblock if you’re trying to make a move. However, there are still a few options that can get you on the path to homeownership.
The easiest way to boost your credit score is to pay off your debts; consolidating your loans into one monthly payment could help you reduce your debt-to-income ratio. There are also a variety of loans tailored to buyers with lower credit scores, such as FHA, VA, or balloon mortgages.
It can take time to pay off debt and rebuild your credit, but that doesn’t mean you can’t work towards buying a home. If you have any questions about your individual situation, it’s best to contact your agent or financial advisor. They’ll have plenty of resources available to guide you in the right direction!
Are you thinking about buying a home before the end of the year? Contact us today to get the ball rolling on your real estate journey. We can be reached by completing the form below.
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