“Buying a home in a pandemic!”
It’s no surprise that as the coronavirus began to spread across the nation that the real estate market was one of the industries impacted. A survey by the National Association of Realtors in April reported a decline in both home buyer and seller interest due to the virus. This was a result of health and safety concerns as well as the breakdown in the economy. This kind of pandemic has affected us not physically but emotionally. Numerous people were without jobs and income. During this time, it has been extremely difficult for many property managers and/or agents having to work from home instead of in the office. They are not able to communicate directly with their client, instead virtual meetings are taking place. By saying that, new home sales skyrocketed during the summer months, getting lumber to start and finish home construction has become a challenge! The shutdown resulted in short supplies and high prices on lumber. It is affecting the construction industry materials from wood being needed for framing to basic interior trimming. The people who tended to buy homes were those with jobs that pay well and have been less likely thrown out of work during this pandemic. As for them, several factors play a key role in their interest of buying a home, especially single-family homes. The additional space and the view of a backyard can be very appreciative and pleasing.
Here are some tips if you are thinking about buying or selling now:
- Carefully consider whether you are financially and emotionally ready to buy a home and whether you need to move right now.
- Shop at least three lenders to find the best rates and get preapproved for a mortgage before you start looking for homes.
- Don’t be surprised by a competitive market. There may be fewer buyers out there, but there are also fewer sellers.
- Stay updated on state and local regulations and be prepared for a process that looks different from business as usual.
So, the question is whether the funds you pay on a monthly basis go to a landlord or a lender.
As you make that decision, you have to take a long view of the market. Your plan should be to live in your first home for at least five years. Over that time, you’ll have the enjoyment of a home, and in five years the market outlook should be quite different from where we are today. Your decision to buy or rent a home during a pandemic is almost the same as before the pandemic !