The COVID-19 pandemic has resulted in great uncertainty in both the housing and finance markets and buying a new home in the middle of this crisis may seem like a risky decision.
Recent Issues That Homebuyers Are Facing Due To COVID-19 Pandemic
Demand and supply form the basis of the housing market. When the pandemic hit the US in early 2020, the usual spring boom saw a different light as fewer houses became available in the market, more delisting took place and there was a stump in demand owing to social distancing and containment orders issued by the government. But as the lockdown restrictions are being lifted throughout the country, the housing market is seen heating up once again. Study shows that this renewed demand in housing is met with insufficient supply.
How Can You Continue the Process of Buying A House?
Although it is a sellers’ market, you can follow the strategies mentioned below to move forward with your process of buying a house.
Analyze the Market
The best way to handle the uncertainty surrounding the COVID-19 housing economy and avoid making decisions you will regret later is by looking at the bigger picture. Keep your focus on things that you can control. Banks have the capital to lend and the interest rates are currently low. You can assess your own financials and seek help from a mortgage professional to understand your options and mortgage rates. While there is increased market volatility, the 30-year average mortgage rate has sharply declined. Such low rates at a time when businesses are closing are generating a demand for lender services. This is also causing transaction freeze and issues in extending the closing timelines for buyers.
While most people are comparing the pandemic to the Great Recession due to the current dissonance in the market, it is crucial to understand that housing itself was the issue that contributed to the recession as people received mortgages they couldn’t repay. Some experts have pointed out that the COVID-19 pandemic is different in that due to tight credit, people who are buying homes, or who own them have the financial ability to afford them.
Look out for Deals
With the right capital, you can still take advantage of investment opportunities that usually arise in an economic crisis. As real estate becomes sluggish during difficult times, sellers are willing to negotiate. Hence, while the mortgage rates are at an all-time low, it is a great opportunity to invest in a new home.
Get Help from A Mortgage Professional
As the economic future is still unpredictable, financial experts have varied opinions on when the economy will finally bounce back. Hence, it is best to consult a licensed mortgage professional who can review your financials and provide you an expert opinion in finding a home that suits your needs. In addition to the stress of buying a house and securing the best deal, you may feel overwhelmed by the current COVID-19 safety restrictions. A mortgage expert can support you by handling the procedure associated with home-buying by offering virtual services for mortgages, insurance, escrow and also maintenance and repairs whenever possible.
The experts at Rex Homes have a detailed explanation on how you can navigate this uncertain home market on their blog here: https://blog.rexhomes.com/what-to-do-when-the-housing-market-and-the-world-get-turned-upside-down/