After an initial hit, the real estate market has come roaring back during COVID-19. This has come to the relief of many, as real estate is a hugely important part of our overall economy. However, it is still a nerve-wracking period for home buyers, and many have asked themselves whether or not this is truly the best time to buy a home.
Like anything else, there are pros and cons. Here is an overview.
The greatest positive of the moment is that mortgage rates are at the lowest they have been in years. At various points in August, the mortgage rates dipped below 3%. This low rate is in response to the current economic situation, which has helped drive these interest rates down. It is also possible that these rates will remain low for an extended period.
Furthermore, it is possible to find an incredible bargain on a house. Many are desperate to move for various reasons, including a new job or a change in financial status. If this is the case, it is possible that the right buyer can swoop in and get a great deal on a home that may have been beyond their reach otherwise. Additionally, many states are starting the eviction and foreclosures again, which may create a positive effect for buyers.
Buying a home can be complicated at the moment. Various states have enacted restrictions on real estate sales and open houses, and while the real estate market is fully open in all states, various regulations have limited open houses and the number of people who can be in a home at the time. Many potential sellers are also extremely nervous about letting people into their homes, citing fears of the pandemic.
Furthermore, in many places, home inventory is extremely low. This is great for sellers but terrible for buyers, as it will help to drive up prices and competition. Homes are spending less time than ever on the market. You may see your dream house one day, and it may then disappear the next. This means that prospective buyers have to move faster than before and be prepared to spend more money than they initially planned. This, of course, may price many out of the real estate market.