With all the irregularity in the economy right now, some families have decided to put their home search on pause, but others have not. Although challenged by stay-at-home or safer-at-home orders, plenty of Americans are still eager to find a new place to live.
The continuing low inventory and rock-bottom mortgage rates would normally set the stage for a highly competitive spring buying season. But, just like daily life, the coronavirus pandemic is making the markets anything but normal.
Buying a home right now may seem even more unnerving because of the volatile stock market, historic unemployment figures, and worries of a recession. However, life changes that lead people to buy a home still continue, such as an expanding family or kids leaving the nest, or relocating for a new job.
Buyers who were planning to enter the market this spring might be wondering what homebuying will look like later in the summer, or even next year. Some consumers are questioning if COVID-19 will cause the housing market to collapse, like it did during the financial crisis in 2008.
Partly due to some of the lowest mortgage interest rates in nearly 50 years, most experts do not expect the impact on housing to be comparable to the magnitude of the last downturn. Unmotivated and uncommitted buyers have receded, but it’s probable that the slowdown of the real estate market will be followed by a strong rebound.
Expecting any price declines to be nominal, in addition to fewer foreclosures, and demand remaining high, industry professionals note that during this period of economic uncertainty, we are in better shape than we were in the past.
One of the outcomes of the housing bubble burst is that lending laws were tightened. This time we aren’t dealing with bad mortgages. Furthermore, homeowners have a record amount of equity in their homes, meaning that homeowners who may have lost their job are much more likely to put their property on the market instead of going into foreclosure.
To boot, more people now days own their homes outright than they did a decade ago. About 4 in 10 homeowners don’t have a mortgage compared with 3 in 10 when the last recession occurred.
Also keep in mind, there is simply still not quite enough homes to fulfill the number of buyers. With so many members of the millennial generation looking for single-family homes, demand isn’t likely to drop-off anytime soon. And, getting a property under contract now while locking in such low interest rates can give buyers a little confidence during this ambiguous time.
Organizations within the real estate industry have made successful adjustments in the way they conduct business to keep consumers safe while also productively navigating transactions. Buyer and seller consultations are being done through virtual meetings. While open houses and showings are not easy to arrange because of safety issues, realtors and sellers have amended their processes to accommodate buyers safely.
If you make an offer and it is accepted, real estate agents and title companies have adapted ways to keep everyone out of crowded conference rooms and use technology to assist in closings.
Because it’s impossible to time the market, whether buying stock or real estate, so professionals agree that it’s more important to make sure the timing is right for your own personal situation.
If you have decided not to postpone plans to purchase a home, or you need to make a move, reach out to a local real estate expert for a trusted advisor to safely and professionally guide you through the process.
The Platinum Group, REALTORS®delivers top realtors with the best tools and resources to provide home buyers and sellers with platinum service and platinum results. With over 80 percent of their business coming from referrals, The Platinum Group, REALTORS®deliver top quality customer service the utmost honesty, integrity and attention.