Buying a House in the Time of Coronavirus: What You Should Know

Rarely has there ever been a better time for buying a house. We know, it may sound crazy to say that now is the perfect time to make a big change in your life. In the midst of a global lockdown and economic changes, the conditions have somehow come together; the stars have aligned to make 2020 a completely unexpected buyer’s market. Now is the perfect time to go house-hunting, to compare your mortgage options, and to invest in your dream home. 

Let’s take a look at why buying a house right now during the coronavirus is a good idea.

2020 Is a Buyer’s Market

The real estate industry goes through two primary phases, sellers’ markets and buyers’ markets. A seller’s market is when the market favors higher home prices, competitive bidding, and seller-favored negotiations. Conversely, a buyer’s market is when the market favors buyers. Home prices drop and sellers are eager to help buyers close the deal. 

2020 has, undeniably, become a buyer’s market, making buying a house an attractive move. Especially for family buyers. Most of your competition, both investment buyers and families, are out of the way due to corona-based uncertainty. But if you have a downpayment ready and are confident in what you want from a house, the market is starving for buyers. This puts you in the VIP seat for good prices and good terms.

Interest Rates are On the Floor

Low interest rates make buying a house a good idea. Not only is it a buyer’s market, but interest rates for mortgages have never been better. Stock market uncertainty has caused big-money investors to turn their attention toward more sure bets, like mortgages. They are authorizing more loans and at lower rates to encourage home-buyers to take out mortgages. Every point of interest reduced from a mortgage can equate to thousands of dollars you will not pay in the coming years.

That said, remember that the mortgages with the best terms right now are the industry-standard types that are considered absolutely safe. Look for Fannie Mae and Freddie Mac mortgages that your lenders will feel confident about.

Home Prices are Flexing

If you’ve been waiting for a favorable shift in home prices, now could be your chance. As the coronavirus conditions impact each region differently, so too are home prices impacted. Sellers may be lowering prices and in some areas, home values may drop to an opportunistic price point. As long as you’re careful not to overpay for a home that will soon drop in price, you can take full advantage of the buyer’s market and low interest rates.

Get Proactive About Your Process of Buying a House

Even though the market is primed for buyers, there are also all the usual Corona concerns that may slow down your home search and the overall buying process. Sellers, realtors, and bank managers alike are wrapped up in their own at-home work and family situation. Not everyone is answering the phone or responding to emails quickly. Some homes are being taken off the online market just so they will not languish while most buyers are gun-shy about big decisions right now.

This means that to successfully take advantage of this unusual buyer’s market, you’ll need to get proactive. Keep making calls. If a house you liked goes off the market, don’t be afraid to call the seller. There’s a good chance that the house is still available if you’re willing to push through. The same goes for getting in touch with banks, inspectors, and other contacts along the way. Everyone is wrapped up in their own corona-related challenges right now, so be prepared to do more to facilitate your home-buying process than usual. Because if it’s worth it, it’s worth it.

The New No-Contact Real Estate Market

Last but not least, be prepared for the new no-contact methods of doing business. You can still tour a home, but must schedule a solo-tour instead of an open house and remain 6-feet or further from the realtor showing you the home. You can still schedule inspections, with the same conditions. Even in instances where a handshake is usually appropriate, we’ve found a way: The real estate elbow shake.

You can absolutely complete all the necessary steps, remotely and in-person, to buy a new house. Just remember the new no-contact rules. For services, call around local businesses to find who’s back up-and-running with new no-contact policies.

Buying a House in Corona 2020

Is now the perfect time for you to buy your dream home? With sellers eager to sell and interest rates on the floor, it very well could be. Keep an eye out for market conditions and a sudden drop in the price of good homes you would love forever. While now may not a great time for investment buying, it could be the perfect time to buy your forever-home and get a great deal on a mortgage.

For more insights on corona-era home buying or assistance from professionals who are ready to help, contact us today!