The COVID-19 outbreak has sent the world into an economic turmoil. There have been many changes that have changed the way many people and businesses operate. Furthermore, with the extreme measures such as quarantine and social distancing, many home buyers and sellers have now been left wondering of their next step. However, economic crises and falling property prices aren't a new experience. There have been several recessions in the past that saw home prices fall drastically, and buyers benefit. But the big question is, should you buy a house with all these economic craziness or hold on a bit? This article outlines crucial aspects that can help you make a wise decision.
The Impact of COVID-19 in Real Estate Market
The housing market is among the industries that have been affected by the coronavirus pandemic. The situation has seen a drop in home searches by clients as well as delayed listings. A recent survey by an Economic Pulse, NAR Flash Survey shows that about 48 per cent of realtors have noticed a decreasing trend in home buyers' interest due to the pandemic. On the other hand, the same survey indicates that nearly 45 percent of real estate agents believe that the availability of lower mortgage rates is attracting more buyers. However, the fact that the prices are lower than average doesn't call for hair-on-fire buying decisions; you still need to weigh your options.
Before You Plunge into Buying Analyze Your Financial Situation
The point here is not about how low home rates can go during this pandemic. But rather how much property you can afford to purchase before the prices go back to normal. If you can pay for your mortgage and still survive for the next unknown period, then it is the best time to buy your house. It's also important to keep in mind that the opportunity of reduced rates won't last forever, and if you wait for longer, the prices may shoot up before you realize it.
On the other hand, if your job is unstable, then it's likely you may face financial hardships in the future. Consequently, if you're a businessperson, it's essential to gauge the possibility of your business thriving in the current situation. Remember that analyzing and knowing your financial condition during this time is as crucial as finding a sweet deal on the housing market.
Advantages of Buying a Home during the Pandemic Period
The reduced rate is one of the advantages you get from purchasing your home during this period. Together with decreasing home prices, economic crises like coronavirus tend to lower mortgage rates. Since the real estate industry plays a crucial role in the economy, reducing mortgage rates during this time helps lower the price of housing in order to attract more mortgage borrowers.
The second advantage is that the value of homes is generally low during this time. If you intend to buy a home, there is a possibility of finding banks and other financial institutions selling foreclosed properties or property owners who are willing to reduce their selling price. Similarly, you may find some homeowners making short sales to try and get out their mortgages.
Safety Measures Adapted by the Housing Industry to Safeguard Buyers
The coronavirus pandemic has created tense moments, even moving around to check the available property feels scary. That is the reason the housing industry has introduced new measures and approaches to better adapt to the situation. These measures aim to reduce the risk of exposure to the virus as well as ensure buyers and agents remain safe. For that matter, most realtors are now conducting their businesses remotely via virtual means. Similarly, to minimize contact, buyers and sellers can now hold their consultation meetings virtually.
Also, due to quarantine and lockdown measures that make it harder to show the houses to clients, real estate listings have resolved to virtual tours. However, if your region allows people to go out and your health is not compromised, you can still see the available houses in person. You'll only need to take some health precautions such as using a hand sanitizer, shoe covers, and keeping a reasonable distance. Furthermore, other realtors leave all doors open to ensure you explore all the enclosed areas without having to touch any surface.