Many industries have been devastated by the economic shutdown caused by the COVID-19 virus. Real estate is not one of them.Mark Fleming, Chief Economist for First American,
Home Buying During COVID-19 Pandemic
Dated: March 27 2020
The coronavirus is scary. But those willing to enter the housing market have the benefit of low rates — and the wisdom of those who bought during the last crisis.
Your down payment fund was safely in cash. You’d planned, perhaps for years, for the 2020 home-buying season. Then, just as the perfect home hit the market, the coronavirus turned the world on its head.
Should you go through with the purchase?
Whatever it is that is happening now hasn’t hit the housing market yet, but it probably will. Stocks have fallen, entire industries are putting themselves on pause and all manner of small businesses are taking hits.
There is so much we don’t know about what the next few months will bring, including whether it will even be over in the next few months. But the economic impact of the virus will be far-reaching, affecting everything from employment rates, to buyers’ and agents’ willingness to attend open houses, to whether sellers pull listings. Many people will have less money, and they may have less access to it as well. Quicken Loans, the nation’s largest home-loan lender, said Thursday that it had no current plans to change underwriting — which leaves open the possibility that it and others might in the future.
All that may make it seem like an odd moment to consider buying a house. But there will be many people who are confident about their job security — or moving for job offers that haven’t evaporated. There will be others making room for new family members or looking to be closer to older ones who may need care.
Everyone needs someplace to live, and here is another thing that will probably not change: In many parts of the country (and plenty of urban neighborhoods dominated by single-family homes), the housing stock for sale will be more attractive to many than what is for rent.
Much of the inventory has to come from people who are moving up or on and will themselves need to have the courage to buy themselves a new place.
This is encouraging to many home buyers ready, willing, and able to made the call to buy NOW. We assume interest rates as well as home prices to increase as we come out of the COVID-19 pandemic.
Reach out if you would like more information to see if now is the time for you to buy or sell.
Morgan (707) 696-8654 firstname.lastname@example.org
Julie and Morgan are a mother-daughter duo making up the Sullivan Group! We are experts on the cities, towns, and neighborhoods as well as closely connected to the people who live within those limits.....