Is Now a Good Time to Buy a Home?

The impact of the coronavirus has affected everything from stocks, entire industries and small businesses all over the globe. So, what about real estate? If you were planning to buy a home this spring should you postpone that?

No one really knows what the next couple of months will bring, but there are a couple things we can expect. The economic impact of the virus has been and will be far reaching. How that will ultimately affect employment rates is unknown which may trickle into real estate. Many people may have less money, and less access to it. Sellers and realtors may postpone open houses or pull listings in fear of the virus.

Despite this, one certainty we do know, is people need a place to live.  There are still many people who are confident in their jobs, need to move for employment, or have an expanding family. Therefore, home sales won’t come to a slamming halt. In fact, for people who are in the market, they will be able to take advantage of record low interest rates.

Currently interest rates are hovering around 3% for a 30-year fixed rate. If you purchased now, you would essentially never have to refinance your home. These rates are unheard of. Although, just recently interest rates did jump up to 4.2% for the same 30-year fixed rate. This came as a result of the exceedingly high amount of refinance applications. Since the rates are SO LOW, not only is it great for buyers but its also a great time for homeowners to refinance. Banks are getting hit hard with people wanting to refinance their homes to be able to take advantage of these rates and lower their mortgage. Unfortunately, as a result rates briefly jumped due to the surge in applications which have exceeded the lenders capacity level impacting the displayed rates. The rates are expected to go back to market value.

So, you have saved for months for a down payment, you have a steady job, and you had planned to purchase a home this spring- then the pandemic hits. My advice? I would continue to pursue your home. There will always be uncertainties in life and the only thing you can do is prepare. So, if you are prepared to purchase a home and have the cash in hand for the down payment, why not?  You’ll reap the benefits of the low interest rates and be able to lock that in for 30 years. Vince and I have planned to purchase a home this spring for the better part of a year. Despite what is going on in the world, we have our finances in order, cash in hand and are ready to make a purchase.

What is going on in the world right now is scary and is uncharted grounds, but I think the best thing people can do is continue to live their lives- safely. If everyone pulls their money out of the stocks, stops spending money or stops purchasing real estate out of fear, it will take a major hit on the economy. We are already taking a huge hit. We don’t want to revisit 2008.  So stay healthy, wash your hands, and continue to move forward. This to will pass.