We’ve all heard or read expert opinions by economists that there could be an economic downturn or recession in the 2020 time frame. The Washington area is never affected as hard as the rest of the country, as government and professional support jobs continue to remain viable.
I reached out to a Travis Vollmerhausen, a mortgage lender with First Home Mortgage, to see what he would advise for those thinking of buying or selling their home, given what could come.
“There’s always a risk in waiting. Every situation is different, but if you’re fiscally conservative, it would make more sense to sell sooner than later, he said. “Lots can happen in two years— change in the White House, recession, war—so if a seller is comfortable with what they could sell their home for now, I would do it. Waiting can be very stressful and, in some situations, there could be tax implications for selling a home that is no longer a primary residence, especially if they’ve moved out of state.
“If there is an economic downturn in 2020, hopefully there would be a small silver lining in the way of slightly lower rates,” Vollmerhausen continued. “With that being the case, and assuming it would be more of a long-term investment, selling and buying back to back would be smarter then locking yourself in to a short-term rental.
“Talking to an accountant and financial planner would be advisable.”
This is a good time to be thinking about your housing needs looking ahead.
Guest post and photo from Melinda Schnare, a real estate agent with RLAH Real Estate.
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