So many changes in our daily lives have happened in just the past two weeks that it is hard to wrap our heads around it all. From quarantining to social distancing to working from home, all our lives have been affected by the coronavirus. Even more so if you are actively hunting for that place to live. I mean, if you have to be isolated at least you can do it in your own home and not a rental!
Every family’s needs and circumstances are different. It’s better to consider your own situation as the most important thing when buying a home and not trying to time the market perfectly. What the real estate market and overall US economy do are far beyond our individual control. Take charge of what you can by making a smart decision on the time to buy a home. Work with a trusted Realtor who knows your local market and can tailor a plan to meet your needs.
Many home buyers may be looking at the market right now and trying to decide if they should move forward with a purchase. It’s a scary time but it could also be an opportunity. Let’s discuss some of the benefits and pitfalls of the current market for home buyers.
Right now, as has been the trend for many years, we are in a seller’s market. Low inventories have driven up prices while interest rates have been low making buyers anxious to get a loan at such great terms. Will this seller’s market last through the pandemic scare and beyond? It really depends. We could see fewer homes on the market since sellers may be wary of overall economic conditions. This could lead to a continued shortage of homes on the market. Conversely, if there are less buyers in the market going forward the listings that are available won’t get snatched up. Meaning more inventory and less competition for homes for buyers. We are so early in the pandemic and likely economic recession we just don’t know where the market is going yet. It could be a boon for buyers or make it even more difficult to find a home.
Will home values go down in the future? I don’t have that strong a crystal ball and I think it depends on how fast we can move forward and get back to daily life after the coronavirus scare is over. If this is just a short blip for a few months, I would expect the real estate market to chug along just like it was before. Though if there are continued economic troubles, home values will likely stabilize or go down. Remember though, buying now does lock you into very low-interest rates. That may not be in the case in the future so consider the savings you would have from a lower rate versus saving a few bucks on the purchase price in the future.