Buying a house in the middle of an unstable economy can be a tedious procedure. Moreover, housing prices tend to deflate during recessions, and they usually rebound slowly. This year, the spread of COVID-19 has created a lot of uncertainty in the housing and finance markets.
Some recent issues faced by buyers due to the COVID-19 pandemic
Similar to the economy, the housing market functions on supply and demand. The usual spring boom of the housing market saw different light in 2020 as the pandemic hit. There were fewer houses listed for sale, more delisting occurred, and an overall slowdown in demand as the governments issued containment and social distancing orders. However, as the lockdown restrictions are relaxing, real estate across the USA is heating up. The growing demand for housing renews this, but at the same time, there is insufficient supply.
Options to continue the process of buying a house
Understandably, it is a seller’s market. However, with the help of the mortgage professionals at Rex Homes, here are some options you can look at to continue the process of buying a house:
- Analyze the market conditions: You can manage the uncertainty caused by COVID-19 by looking at a long-term view of the situation and focusing on things you can control. This can help you avoid making decisions out of panic. The interest rates are low, and banks have the cash to lend to borrowers with credit. You can understand the impact of mortgage rates by assessing your financials and taking help from a mortgage professional to help you analyze the situation.
There is increased volatility, with the average 30-year fixed mortgage rate declining sharply. These low rates are creating a demand for lender services at a time when businesses are closing. This leads to buyers’ issues, such as extensions in their closing timelines and freezes on their transactions.
The housing market is location-specific since each location all over the USA was affected by the pandemic differently and at different times. The housing market may seem dissonant as everyone relates to the great recession, but it should be understood that housing itself was the problem during the recession as people lost their homes. This was due to too much credit, and people received mortgages they could not afford. In the COVID-19 pandemic, credit is much tighter, so people who own and buy homes will likely be able to afford it.
- Look out for Deals: Economic crises can offer investment opportunities for those who have the capital. Since real estate tends to become slow in uncertain times, sellers are more open to negotiations. In addition, today, the mortgage rates are at a record low, so while it may look stressful, this may be a good time to invest in a new home.
How can a Mortgage Professional help you?
The economy’s future is unpredictable, and economists are divided on their opinion on when the economy will bounce back. A licensed mortgage professional can provide you with the latest expert advice to help you find the best house that suits you and pay the best price for it. Trying to navigate through the COVID-19 restrictions and safety regulations can be separately overwhelming. Mortgage professionals can handle all the procedures related to buying and selling virtually by offering escrow, mortgage, insurance services, and even maintenance and repairs whenever possible.