There is currently a lot of confusion infusing our local, national, and global communities. While we realize that real estate may not be your top concern, we remain committed to helping those who are still actively searching for a new home this spring.
The full impact of the Coronavirus on real estate is uncertain. However, if you are already prepared to buy a home, the current conditions of our real estate market make now an optimal time to act quickly. The key to knowing if now is the right time is to be confident in your household’s finances. It’s tempting to try and time your decision based on current events, but we always recommend a more thoughtful approach.
If, after carefully examining your finances, you remain confident that now is a prudent time to buy, we are here to help. Here are three reasons why now could be your best time to buy a home.
1. Interest Rates are at Their Lowest Point in More than 50 Years.
Mortgage rates have been low for some time, but we are now seeing some of the lowest rates in more than a generation. And with rates even a point lower now than they were a year ago, that means you have approximately 10% more buying power! This gives you a whole host of additional homes to consider. With your additional buying power, you’ll be able to consider higher priced homes that were out of financial reach only a few days ago.
It is quite reasonable to be nervous about the volatility of the market. But if you have a stable income and savings ready, now is a great time to take advantage of those low rates. Commentators have speculated that rates will go up significantly in 2021.
2. There is Reduced Competition from Other Buyers.
Spring is usually the season of lookiloos. With warmer weather and longer days, the largest number of buyers are typically looking for homes during the spring. However, this year you can take advantage of fewer casual buyers heading to open houses and fewer serious buyers placing competitive bids. Compared to the pace that our market has moved in recent quarters, this could be the best time to find your dream home before someone else snatches it up.
SEARCH FROM HOME: If you are eager to begin, high-quality photos, video, and 3D tours all make it possible to conduct your home search from the comfort and safety of your home. If a home at the top of the list is missing these helpful tools, ask your Beverly-Hanks agent to arrange a video tour.
3. A Recession shouldn’t Impact Home Values.
With the financial markets remaining volatile and the 2008 housing crisis still on our minds, you might be worried that the Coronavirus will spark a recession. The reality is that during five out of the last six recessions, home prices increased. The 2008 recession is the only recession that included a drop in home values. The previous downturn was sparked by the housing crisis and is largely the reason why home values suffered.
The United States economy remains strong with high employment. If the government’s precautions successfully contain the virus and fear subsides, even if a recession evolves, it will likely be short lived.
Buying a home is the most significant financial decision most adults make during their lifetime. If now is a financially prudent time to buy, don’t miss taking advantage of what could be the silver lining of this horrible malaise.
Search Safely during COVID-19
Let’s face it. If you are serious about a home, you’ll want to visit it in person. When the time comes for that live tour, here are a few of the strategies we will use to minimize the health risks of visiting homes.
- Your agent will inquire that no one has been ill in the home over the last 14 days.
- Your agent will avoid shaking hands with you and anyone else he or she might meet.
- Your agent will recommend minimizing the touching of doorknobs, light switches, and other everyday objects. As we prepare to tour homes, we recommend having gloves, hand sanitizer, and disinfectant wipes available.
- Your agent will recommend that you remove your shoes to respect the seller’s home.
Here is a list of other precautions that the Center for Disease Control also recommends for preventing the spread of COVID-19.
We’re Always Your Trusted Partner
In times of ease and times of crisis, Beverly-Hanks is your trusted real estate partner. As the region’s leading real estate firm, we have the resources of a vast network of brokers and listings. The market will soon slow, which will cause a welcomed increase in inventory. Together, we can help you safely find and purchase the home you have been working toward.
All real estate is local. In order to make confident real estate decisions, it’s important to have timely and neighborhood-specific information. Contact us today to speak with a Beverly-Hanks real estate agent about buying homes and land in Western North Carolina. View all Beverly-Hanks real estate listings.