The COVID-19 pandemic brought everyone’s plans to a halt. Events and weddings were postponed and many people were furloughed or lost their jobs during the lockdown. Despite the economic uncertainty that continues to plague the world, people are choosing to move forward. The housing market is still going strong, and it’s possible, if not optimal, to buy a home right now. If you are thinking of buying, don’t cancel your plans because of the coronavirus. Here’s what you need to know.
Average mortgage rates keep falling.
One of the main indicators that financial experts look at when determining whether it is a buyer’s market is the average mortgage rate. The 30-year fixed mortgage rate, which is the most popular option, dropped to 2.88% in August 2020. This rate has been on a steady decline, down from 3.75% in August 2019 and 3.26% in May 2020. Additionally, the fees and extra costs that come with a mortgage tend to drop alongside these rates, with home loan rates under 2%, which means you’ll end up paying less for a house now than you a year ago.
For example, a house that costs $300,000 might have been out of your budget before because of the high mortgage and interest rates. However, the same house might now be more affordable because your monthly payment is more competitive.
Many homeowners are eager to sell.
The COVID-19 pandemic is changing the workforce. Before, people wanted to live in the city for an easy commute. However, now that more companies are transitioning workers to full-time remote, the desire to move into the suburbs is higher than ever. Families are eager to sell their urban apartments in favor of bigger suburban houses with backyards, home offices, and other amenities for kids.
This is great news if you want to buy a house in an urban area. With the supply of houses increasing, buyers can be more demanding. You can take time to find your dream home and put in competitive bids at lower rates. If you can negotiate well against a seller and they accept the bid, your home can be even more affordable because you bought a house for less than was listed.
This can particularly benefit urban renters who want to buy their first homes in the cities they love.
There are options to sell your home quickly.
Wanting to buy a house is one thing, but having the ability to sell your home is another. If COVID-19 creates a buyer’s market, will you be able to sell your place? This is a question that many existing homeowners have.
Fortunately, you can decide how quickly you want your house to sell. You can take steps to stage it and make it more appealing, or you can invest in upgrades and repairs to make it more desirable. These steps will help you list your house at the price you want without decreasing the demand for it.
Additionally, if you just want to sell your house as-is and upgrade to a home in a different city or better neighborhood, look for organizations that specialize in buying homes. While there are some national brands, many people prefer to work with local companies. We buy houses Fresno is a great place to start if you live in California and are interested in selling your house quickly.
This pandemic could stretch into early 2021 and beyond. While everyone wants it to end, the reality is that we don’t know when life will return to normal. Don’t put your whole life on hold, take steps to buy the house you want in the neighborhood of your dreams.