IF You Are Wanting to Buy a Home Right Now, This is For You!
Most of us have a ton of questions about what the true health and economic impact will be as a result of COVID-19. But, what does this mean if you are still looking to buy a home?
Today I received this message from a Buyer Client: “I understand rates are excellent. How do you think the market will be in the near future? I know that may be hard to predict.
As with everything COVID-19, we are evaluating the real estate market on a DAILY basis! What we may believe to be true today could change. Things could stay the same. Things could improve.
Here is what we know to be true right now:
1) Mortgage Interest Rates are at an all time low. NO–Just because the Federal Reserve dropped rates to 0% does NOT mean that you are getting a 0% interest rate on your mortgage. This is the rate at which banks can borrow. Due to the influx of refinances some lenders actually slightly raised the interest rate to curb business and make it manageable. RATES ARE STILL AT A 50-YEAR LOW! Best course of action is to speak to your mortgage lender. They are on top of everything current in all things mortgage.
2) Home Inventory is still low and DEMAND is still at a high. Houses are continuing to come on the market. They continue to sell. Many continue to command multiple offers. This means that you as a buyer still need to be VERY proactive about getting into properties as soon as they hit the market and be ready to make a quick, yet informed, decision.
3) Real Estate Professionals are taking every precaution to ensure the health of both buyers and sellers. This includes not touching door knobs directly, in some cases removing shoes before entering an occupied property, and increased use of hand sanitizer and disinfectant wipes or spray.
Here are direct and/or foreseeable future realities:
—>Some sellers who currently occupy the home may temporarily remove the home from market.
—>Sellers who choose to leave their home on the market could require special precautions be taken during showings and/or limit showings.
—>Some buyers are temporarily now out of the market if they had limited funds to get into a home and are concerned or impacted by temporary time off work.
—>Buyers who were borrowing money from their 401k to purchase may put their home search on hold.
—>There could be some equalizing forces in this market. As some buyers drop out it could loosen up the competition a little for the strongest, most serious buyers. However, if inventory does not continue to rise then the effect may be minimal.
Here is what I believe to be absolutely true no matter what the market is doing. IF buying or selling a home is going to improve the overall quality of your life and the lives of those you love, NOW is always the best time to buy or sell. We also know that the best time to buy anything is when it is on sale–in the stock market that could be buying when stock prices are low, in the housing market it can mean buying when INTEREST RATES are low OR when there is HIGH INVENTORY. In this case, we are at low interest rates. So long as you are staying in your home 7-10 years, and not drastically overpaying for your home, you should weather any market change.
Uncertainty about the long-term effects on COVID-19 are understandable. We also know that this too shall pass (as my dad was so fond of saying). If you are looking to buy simply educate yourself. Talk to your financial advisor. If you don’t have one, ask me to refer you (it’s free). Make the best decision for you and your family.
And please, if you have questions, just reach out. I can’t promise to look into a crystal ball and let you know where we will be in three or four weeks, but I can promise to help guide you to the best solutions for you. Just call me 717-963-0016. P.S. Text works too.