COVID-19 may have thrown the entire world in turmoil but that doesn't mean that it's not a good time to buy a home. In fact, the Home Purchase Sentiment Index released by Fannie Mae noted that more than half of people in the United States think it's still the right time to become a homeowner.
Still not convinced? Here's why you shouldn't let the coronavirus impinge on your deserve to become a homeowner.
There's Less Competition
Even though there's evidence that over half of adults in the country think the time is still suitable for purchasing a home, there are many of them who will be cautious before doing so. This could be due to concerns of exposure to the virus, for example. Another common issue is that a great deal of the job outlook for the United States is still mired in uncertainty.
There Are Safeguards in Place
For the most part, it seems that the country is pulling together to get through the COVID-19 pandemic in the safest and most efficient way possible. Not surprisingly, the real estate market as a whole has embraced alternative methods of meeting your needs that help keep everyone safe and comfortable.
While virtual tours were certainly an important part of the home buying process prior to the pandemic, there use these days has exploded. Expect to see high-quality virtual tours with detailed 3D elements that let you imagine yourself living in the home.
In another nod to safety, many of the necessary transactions can now be completed entirely from a remote basis. From obtaining the results of your home inspector's report to signing the closing documents, secure transactions via digital means a reduction in the likelihood that you'll be exposed to COVID-19.
Mortgage Interest Rates are Low, Low, Low
The Federal Reserve Bank started lowering interest rates again in March 2020 in response to the effects of the coronavirus spread across the world. As more countries were infected and the economic outlook continues plummets, the Fed continued to reduce the interest rate.
This means that you aren't likely to find interest rates this low for the foreseeable future. Not only does a lower interest rate mean that you'll pay less for your home over the course of the loan, but it will also probably reduce your monthly payment as well.
Better Negotiation Power
Because there are fewer people who want to actually follow through and purchase a home during these unprecedented times, you'll be in a better position to bargain. Whether it's accommodations for moving in, a reduction in the selling price or some other amenity you want to agree on, emphasizing your motivation to purchase a home could sway the deal in your favor.
COVID-19 and the pandemic it has ushered in has changed the way the world operates for good. Despite these changes, however, it's still a great time for you to buy a house. Take a look at your personal situation and decide if the current landscape is one that supports you realizing your homeownership dream.
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