If you were planning to buy a home this year, chances are good that you are running behind on your plans. In fact, you might be tempted to put a hold on purchasing a home altogether for now. But is that the right decision?
There are both advantages and disadvantages to shopping for home during the coronavirus outbreak. Let’s go over some of each.
Cons of Buying a Home During COVID-19
First, let’s go over some of the possible disadvantages of shopping for home during the corona virus outbreak. We think that overall, these are arguably outweighed by the advantages, which we will go over next.
- Home prices are high. Right now, demand for housing is outstripping supply even more than usual as many sellers have decided to hold off on putting their homes on the market. This has driven up home prices. Nevertheless, this still may be the most economical time to purchase soon, as we will explain shortly.
- There are logistical challenges. Naturally, shopping for home is more complicated when you need to practice social distancing and avoid meetings with people outside of your household. Thankfully, there are solutions in place, as you will discover in the next section.
- Your income may be in doubt. Probably the biggest deterrent to buying a home right now is that it is difficult to say what will happen with your job in the future. Some professions are more secure than others, but layoffs and furloughs can strike in any industry.
Pros of Buying a Home During COVID-19
Now that we have got over the potential drawbacks of shopping for a home during coronavirus, let’s talk about some of the advantages which can outweigh those drawbacks.
- There are solutions in place to keep you safe. Previously, we mentioned that there are some logistical challenges to shopping for a home right now. But it’s possible to meet with real estate agents and mortgage company representatives online, and you can even take virtual tours of homes you are thinking about purchasing. In fact, if you prefer conducting most of your business online rather than in person, you might even find it easier and less stressful to shop for a home now and then you would during ordinary times.
- Competing buyers might be deterred. Even though this is a seller’s market with high demand, that doesn’t mean that every homebuyer has decided to stay in the game. Just as you might be on the fence now, others are as well, or have already decided to wait to buy a home. That means that you no longer have to worry about competing with those buyers’ offers.
- Rates are low. Although mortgage rates have been on a bumpy ride lately, they have reached some record lows. You have an opportunity to cash in on those low rates while they are here. In fact, if you buy a home with a fixed rate mortgage, you will still be paying today’s low rates in the future, no matter what happens with rates.
- Home prices may go up more in the future. Another reason why this might be a good time to purchase a home is because even though home prices are high right now, some analysts believe that they will climb further soon. This could happen, for example, if after the quarantine ends, all the buyers which have held off abruptly flood the market with demand. So, you could end up saving a significant amount of money in theory if you purchase a home now rather than wait for that to happen.
We Can Help You Buy a Home with a Competitive Mortgage During COVID-19
During a consultation, we can help you consider the pros and cons of buying a home during the corona virus outbreak with respect to your individual situation and goals. We can help you understand what to expect from the home buying and mortgage process during this time and explain how we do our part to make it as fast, smooth and easy as possible.
With rates as low as they are and with home prices set to potentially rise in the future, we think this may be an ideal time to consider purchasing a home in Davie, Florida or elsewhere in the state.
If you are ready to get started, please give us a call today at 954-840-8811 to schedule your consultation.