May 8, 2020
Typically, this time of year starts the busy season for the real estate market.
Around this time, more and more sellers are either listing or getting their homes ready to sell in the coming months. On the other hand, home buyers are typically beginning the preapproval process with mortgage lenders and checking online real estate websites hourly to see the newest listings to hit the market.
This was the case about a week ago, but now you may be wondering if you should put your plans to buy a home on hold? With the recent spread of COVID-19 and increasing sentiment of social distancing, there have been changes to the market that you should consider before you decide to buy a home.
As many industries are suffering from the impact of COVID-19 and social distancing, people all across the country are finding themselves without work or a definite timeline of when they will receive their next paycheck.
On the other hand, some industries are booming as a result of increased demand for delivered goods and technical needs for many people now working from home.
Wherever you fall among this change, it is important to realistically look at your source of income and determine if it is stable or not. If your income is not affected by this change, then it may be a good time to start building equity in a tangible property. If you are short on cash for the unforeseeable future, then it is probably best to postpone your home search to avoid putting yourself at an even greater financial risk.
Mortgage rates have been on the decline for a while now and are expected to stay low.
According to Freddie Mac this week, the current rate for a 30-Year loan is hovering around 3.36% and 2.77% for a 15-Year loan.
As a result, many homeowners are rushing to refinance to take advantage of these low rates, but what does this mean for homebuyers?
With mortgage rates at historic lows, this could be a good time to get preapproved and lock in a low rate if you're in the market to buy.
However, with the rising demand, lenders are having a hard time keeping up and are actually offering different rates. So if you are planning to take out a mortgage, it may be a good idea to shop around.
Whether or not you have a strong need to move could be a big factor to consider right now when debating on halting or continuing your home search.
Even though the coronavirus has drastically affected the lives of almost everyone around the world, this doesn't mean that life in itself has stopped.
Some people are in the middle of job relocation which means they have to find housing in a new place. On the other hand, many renters have leases ending which poses an urgent need to figure out if they are going to sign another lease or start building equity in a home. This is also the time when parents are starting their moving process to get into a new home before the coming school year.
Whichever the case may be, it's a good idea to consider whether you feel this move is urgent or if you feel more comfortable waiting a little longer to see how things pan out.
As you can see, the recent changes across the world with the spread of COVID-19 are impacting life tremendously. However, that doesn't mean you can't carry on and move forward.
If you are looking to continue your home search and take advantage of some of the positive opportunities out there right now for homebuyers, then there are several things you can do to stay safe and continue house hunting.
If you would like to speak to a professional who is up to speed on the current market, then you can call our team of real estate professionals at no-obligation to figure out what's the best next step for you.
Plus, if you decide to buy, we'll give you an average check of $5,000 towards your closing costs or as cash at closing with our Buyer Refund Program.