2020 will go down in history as a shakeup the year in the world for all nations. As of 10th June, there were over 7M coronavirus cases with over 400 hundreds of death cases. Half of this year has seen the world economy greatly affected and business closing down. Central banks of affected nations have tried all possible measures to save the situation. For instance, the US Senate passed a $ 2 Trillion relief package in efforts to save the consequences of the pandemic to the economy. Moreover, the coronavirus pandemic seemed to be tamed. The world is gradually opening up or finding ways to cope with the virus. We cannot be on lockdown forever! It is reported that President Trump said that America is reopeningwith or without vaccines. All 50 states in America have been reported to slowly opening up.
Real Estate Bouncing Back
The real estate industry was not spared by the wrath effects of the Covid-19 pandemic. In March, sellers started removing their listing in a wait and see mood. As the 50 states start reopening, it is reported that there is an increase in daily new listings, but the demand is still high. The demand in the real estate market seems to have a V-shaped recovery. Experts associate the high demand with low-mortgage interest rates, easing of lockdown measures, and online shopping solutions. Buyers are in a better position to buy homes as a result of low-interest rates on loans and mortgages.
Why People Should Buy Now
Though the circumstances would show otherwise, sometimes the best moment to invest is in times of crisis. According to research done by Redfin, the homebuying demands is getting stronger. It was reported that in the first week of June 2020, there was a 25% higher demand compared to demand in January and February. The first reason why you need to buy now is to take advantage of the current prices. While everyone is still in the wait and see mood, you can take advantage of the fair prices offered as a result of the impact of Covid-19 and own yourself a home. The prices are not promising to be lower than the pre-corona period, but it shows that the prices are going up.
Second, through the government surplus packages, the lending institutions are in a position to offer competitive interest deals that you will never get on normal conditions. According to a report published on Forbes, there has been a rise in mortgage applications in the last two months. The rise can be attributed to the lowest ever mortgage rates recorded for the last 50 years in the US. How about taking advantage of 30 years fixed-rate of 3.5% interest rate mortgage to own a home? According to Rick Kahler, the lending institution might tighten the lending requirements immediately after the situations stabilize.
Thirdly, you may want to buy now to carry your own with your initial plans. For instance, if before the pandemic you were in the process of relocating, waiting doesn’t make it any better. The industry may take almost a year or more to stabilize. Will your plans wait for such long. Get back to your initial plans, own a home, and settle down.