The COVID-19 crisis has thrown billions of peoples’ financial goals off the rails, including home buying. If you had planned to buy a property in 2020, you no doubt have many unanswered questions regarding property shopping and buying, the impact of the coronavirus pandemic, and more.
How do you navigate through this new reality? Should you purchase that new property that you have been eyeing for? Is NOW the best time to buy a house?
Here are answers to some of your aching questions about buying a house during this period. Whether you are wondering what’s happening with open houses and housing rates, read on to learn more.
Purchasing a Home Now- Is It a Good Time, Financially Speaking?
From a financial point of view, we can presume some benefits from property buying now. For starters, mortgage IR (Interest rate) are low, meaning the monthly housing payments are small and may reduce further.
If you put a property under contract today, a low IR will give you more control than living in a rental property, where rent may continue to spike.
Another critical consideration is the competition. The pandemic has discouraged buyers from shopping for new properties. So, those who opt to venture out have no competition. This gives them an upper ground to bargain for a home sale.
Apart from assessing the housing market and interest rates in your region, consider your financial wellbeing, too. Determine if this is the best time to make a purchase. Meanwhile, answer the following questions: “Is my business or income stable?” “Is the stock market or layoffs worrying me?”
If you are uncertain about your finances, it would be best if you consider a “wait and see approach” first. Alternatively, you can purchase a home is within your budget range, just in case the near future throws you a curveball.
Has The Covid-19 Affected Home Rates?
While the global economy is unstable, home prices have not plunged across the board. Home inventory remains firm.
According to realtor.com’s Danielle Hale, the market may not experience a slowdown like in the previous recession, where prices tumbled down drastically. There are more homebuyers in the market pool.
However, some realtors have paused their listings until the market conditions are predictable or rather stable. A seller who doesn’t have all this time faces a smaller group of buyers because of limited physical access to visit homes and other safety concerns. So, you could have a better chance of buying a home from someone who wants to sell.
So, does it mean it’s Safe to Buy a Home?
While there is no guarantee you will not contract COVID-19, realtors are striving to minimize personal interactions between buyers and sellers, to ensure safety during this period. Even as different parts of the world are easing down restrictions and opening up their borders, you can still do the better part of the home buying process remotely.
You can find a local real estate agent on property finder online and talk to them virtually. But remember, site visits may not be possible, at least not during this period. You can request for virtual tours, though.