With the recent discovery and potential rise of the new COVID-19 Omicron variant, a lot of my buyers and sellers are asking, "Hey RItu, what's going to happen from this point forward? How should we approach this situation?" We'll answer these questions today.
So for my buyers that are planning to purchase a home in Spring, it will be highly recommended to do the purchase instead at an earlier date, simply because there just might be the fear of the virus and expecting the worst case scenario being the lockdown affecting the buying process, not to mention that the prices just might go up due to these factors along with many more.
One of these factors would be businesses that are expecting to have their employees to be back in their offices -- this could trigger a decision change in a company and so this would have an impact in either a chance to relocate or to keep holding their homes for sale, whichever suits them. This will surely shake the market a little bit, as there might be a rise in demand for home offices or larger spaces.
On the other side of the spectrum, what I'd recommend to my sellers will be to continue holding as time will be in your favor. As I've always said, real estate is more of an long-term investment that guarantees you income in the long run. We are expecting that the market could take off in a short one in this situation, so nothing to worry as we are anticipating that both sides, buyers and sellers, will be willing to cooperate when it comes to contract negotiations and the whole sales process as well.
How About the Interest Rate?
The Omicron variant is anticipated to be much more dangerous than the Delta variant, which might be the nail in the coffin for the feds when it comes to the interest rate trend. With that said, if the feds think that the economy might slow down due to the new variant and its effects, then we can expect the interest rate hike not to happen. Regardless of this, it doesn't matter if the market is shifting or not -- if you're thinking of real estate as a long-term investment, buy anytime you want as long as you are ready.
Wrapping It Up
In short -- for my buyers, if you find the sweet location that you're aiming for, go for it. Cosmetics can come later as you live in the house. For my sellers, if you are waiting for a sign if you should give it a go right now to put your home for sale and move on to the next chapter of your life, this is it -- you may want to have it put on the market with such tight inventory to maximize your bottom line.
Do you have any questions with the real estate market today? Are you perhaps interested in buying or selling a home? Let's team up! Call me at 703-625-49949 or visit my website at www.RituDesai.com for more information. Stay safe!