The Coronavirus has had an impact on every industry, including real estate. Due to social distancing and not knowing what to expect long-term financially, home sales have been affected. However, this does not mean it is a bad time to consider purchasing a home. The following is an overview of what to expect with home sales during the pandemic.
How Coronavirus affects buyers
Prospective home buyers are faced with a difficult decision as to whether or not to purchase during the coronavirus outbreak. On one hand, it is more challenging to get out to see home due to social distancing and the increased risk of getting the infection. On the other hand, mortgage rates are incredibly low.
Also, the financial uncertainty of many families has caused a slow down in home buying. However, not all have taken such a cautious approach. Some are attempting to capitalize on the lower mortgage rates and purchasing a new home. In fact, many are doing so as investment opportunities, especially those who find the stock market to be unreliable during this time.
How Coronavirus affects sellers
The process of selling a home has certainly changed for sellers. Holding an open house to show your home to prospective buyers is not an option, although many are getting creative and offering virtual open houses and drive-thru closings. Overall, sellers are certainly at a disadvantage. Perhaps most notably, buyers are more hesitant to make an investment right now, and many have fallen into unemployment are not able to secure a loan.
This does not mean sellers are not able to sell homes right now, but they simply have to be more creative and accommodating with the way they go about it. From utilizing more of an online approach to marketing to ensuring they can close the home without violating social distancing, there are ways for sellers to operate despite Coronavirus.
Is now a good time to buy?
Every prospective home buyer should evaluate their own situation to determine if they should buy a home. This includes determining where they stand financially and how secure their financial future is, along with what opportunities are available to buy a home without exposing themselves or their family to the risk of Coronavirus.
While the financial concern or risk of getting the infection may justly hold some back from buying a home, many others may determine now is the best time to buy due to lower interest rates and potentially lower housing costs. Although Coronavirus will have a negative impact on home sales overall, it does not mean purchasing is not an option. For those who want to capitalize on lower monthly payments due to lower mortgage rates, or for those who want to start their real estate investing journey, purchasing a home might make sense.
The bottom line
Home sales are down due to Coronavirus, but there are certainly benefits to purchasing a home during this time, including lower mortgage rates. However, buyers and sellers alike will need to think more creatively on how to make the deal happen.
EXIT Realty Bob Lamb & Associates is Murfreesboro’s most innovative real estate team.
EXIT Realty Bob Lamb & Associates
2630 Memorial Blvd, Murfreesboro, TN 37129