Springtime is here. Other than blooming flowers, singing birds, and your annual spring cleaning, one of the things that this season is associated mostly with is the real estate season. Under normal circumstances, the real estate industry is in full swing during spring.
However, because of the pandemic, things just haven’t been the same since last spring. Even if we’re learning a bit more about properly dealing with the pandemic, any mortgage loan officer worth his salt will honestly tell you that.
Let’s take a look at some of the ups and downs of buying a house at this time.
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Why Buying a House Now Is A Good Idea
Despite the pandemic, there are several reasons why now would be a good time for folks to buy real estate. Here are some of them:
Low mortgage rates
Mortgage rates are hitting all-time lows now. Since interest rates are crucial in a loan’s overall costs, you might want to consider getting a mortgage now while the rates aren’t as high as they used to be. You’ll probably do yourself a huge financial favor in the long run.
Remote Work Needs Bigger Space
At the pandemic’s onset, many employers have adopted a work-from-home program where it is appropriate. This means that most of corporate America is employing a variant of remote work programs for their employees.
Most people who were fortunate enough to keep working despite the current global health climate found themselves in need of more space to convert as their work and learning stations for their families. Depending on the size of your property, you might need to look for a bigger one to accommodate your present needs.
Easier To Move
With almost everyone working remotely, it is now a lot easier to deal with a big move since you’re home most of the time. It may seem a bit challenging to manage work and packing up for the move, but it is definitely a lot easier compared to when you’re grinding in your workplace.
Why Buying a House May Not Be a Wise Decision Today
While there are certain advantages to buying a property during a pandemic, there are also certain disadvantages like the following:
Covid-19 Made Things Difficult
To say that COVID-19 has upended almost every aspect of our lives is a huge understatement. It has left no stone unturned, including the real estate industry, a healthy and thriving industry pre-COVID. It is extraordinarily challenging nowadays for agents, sellers, and buyers to do business. While technology has been such a boon at this time, it is still far easier to conduct house tours, inspections, and the signing of papers in person than they are online.
Sellers’ Market
Because the economy has taken a nasty fall, we live in what we call a sellers’ market today. This means that the demand for housing is far more than the supply with a very low inventory. The competition is a lot tougher now compared to how it would normally be. And because the inventory is low, the prices of properties are gradually shifting in favor of sellers.
Job Instability
When the pandemic started, many industries and corporations were forced to shut down and cease operations. Unfortunately, some of them had to close their doors permanently, leaving millions of jobless Americans in their wake. Despite the government’s efforts to revive the economy, we have no idea how fast the economy can recover or how long the low mortgage rates will last. At this point, until we’re out of the woods, no one is ensured of any job or financial security.
Never Buy a Home Without an Emergency Fund in Place
One of the worst things you can ever do is spend a large amount of money with no buffer for emergencies. Times are extra hard now because of the limitations on our movement caused by the pandemic. Even if you can afford to pay a downpayment on the house now, it would be irresponsible not to have an emergency fund at this time.
If you don’t have one now or dipped into it because of the current health crisis, you should first rebuild it. Get it back to at least six months’ worth of your monthly expenses. This way, if things don’t go well at work, you have your savings to tide you over until you get a new steady income source. Securing an emergency fund is a necessity for any homebuyer this year.
We hope you found the information we gave you useful, especially if you’re seriously considering buying real estate at this time. Take what you need and use it to your advantage to make a wise and well-informed decision. Buying a home in a pandemic is hard, but if you know how to go about it wisely, you can get better deals than you normally would when there’s no pandemic.