The COVID-19 pandemic has drastically altered every aspect of life and business in the past several months. The real estate market is no different.
If you were looking to buy or sell a house this spring, you have likely been watching how COVID-19 would impact the housing market. Traditionally, spring is considered the best time of year to buy or sell a home—but this year, real estate transactions are at an all-time low.
As the number of COVID-19 cases increases, stocks have dropped, businesses have closed, unemployment has risen, and millions of Americans are staying home. With the uncertainty surrounding our current situation, it’s no surprise that the housing market has taken a substantial hit.
So, what do you need to know about the housing market moving forward?
Buying a House in the Current Market
If you were planning on buying a home and are now unsure what to do, you are not alone. Many future homeowner’s plans were altered given the unpredictability of the current housing market.
In March, as social distancing guidelines increased, agents reported that buyers were less inclined to make a purchase at this time.
Despite the understandable hesitancy to buy, Forbes reports that buyers are currently in a positive position given the state of the housing market. In fact, if you’re looking to buy a home right now, you’re actually more likely to get a good deal, since fewer people are in the market to buy.
Another important trend to keep an eye on are the changing mortgage rates. Mortgage rates have significantly dropped since the onset of COVID-19 since the Federal Reserve cut interest rates.
If you already own a home, you might consider refinancing while rates are low; other homeowners are already taking advantage of this opportunity.
If you’re looking to buy a home, this is a good time to take advantage of lower mortgage rates. Keep in mind, while mortgage rates have dropped, the pandemic has made credit harder to get. Chase Bank now requires a 700-credit score and a 20 percent down payment to receive a mortgage loan.
Given the unpredictability of the current situation, these trends are important to watch as the country continues to respond to these unprecedented times.
Is It A Smart Idea To Sell My House?
The global pandemic has made many potential sellers nervous, and for good reason.
Web traffic to real estate sites like Zillow dropped by nearly 40 percent immediately following the pandemic.
The rules and regulations for selling houses are still unfolding.
Right now, you might feel uncomfortable selling a home in the traditional way, with guided tours and handshakes. In general, many people who were considering selling their homes are taking a step back and proceeding with caution as they wait and see what the housing market will do.
If you’re trying to sell your home, you should be aware of some growing trends the pandemic has accelerated.
For example, online shopping is at an all-time high, which has impacted many sectors, including real estate. While states are beginning to open up, many businesses are still limiting in-person contact, meaning virtual house showings may continue, and may even become the new normal.
Again, it is difficult to make a definite prediction about the future of real estate. Whether you’re trying to buy or sell a home right now, keep monitoring the housing market. As the country continues to return to more normal practices, people will start to regain confidence in buying and selling homes.
What To Expect From the Future
There is no doubt the ongoing pandemic has affected the real estate market. Given the uncertainty of the virus and when the country will return to normal, the market’s recovery will likely be gradual.
However, there is some good news. Many experts believe the housing market will see a massive boom following the COVID-19 pandemic. Since people are waiting to buy or sell their homes right now, they will be anxious to do so once things get back to normal.
These results may be a long time coming, but there is reason to believe there are better days ahead—for real estate and the rest of the world.
Get The Help You Need Today
Given the current uncertainty of the housing market and the future of real estate, getting help from a knowledgeable source is a good plan. If you’re trying to buy or sell your home, real estate agent, Kim Clark in Kosciusko County is happy to sit down with you and discuss your options. Call her today!