The coronavirus has raged on for long that a lot has been affected in the U.S. The economy has been ravaged. People cannot freely go out because of the pandemic; they have instead been advised to shelter-in-place to avoid spreading the virus any further.
The home buying process has also been impacted by this. The traditional way of looking at homes isn’t the preferred solution anymore; if you’re looking for homes that sell fast, you’re going to have to go online. It’s been the preferred medium by companies offering different services and it’s only natural that the staunchly traditional real estate market uses it. It’s about time for innovation, after all.
Consider these tips which will help you find the home of your dreams. It’s not easy, but there’s no challenge that has ever been easy to a person. Let’s get started.
The Buyers’ Market is Empty, Almost
The market right now is almost like a ghost town. Buyers are still out there, but because of the uncertainty brought by the pandemic, they’re almost afraid to make any offers. According to data, the buyer traffic right now is down 25% year-over-year.
There is still a lot of people looking to buy and sell their homes, but it’s not just the same as it was before this pandemic. Many buyers and sellers are choosing to take a wait-and-see approach to the economy and are nervous about selling their homes — after all, it’s hard to sell your home if you end up on the streets.
Buyers, on the other hand, might be nervous, but they’ve never enjoyed more buying power at any age. It’s a kind of benefit that they would certainly not want to have but, under the circumstances, they’ve got it.
Digital Tours are in Vogue Right Now
Many things have gone digital at the start of the pandemic. Where people used to visit actual houses to view properties, they are now visiting — only digital.
Social distancing restrictions are no joke; there are some strict penalties for breaking them. Meanwhile, real estate agents have made their own adjustments to the pandemic. They can still hold viewing trips for prospective clients, but they have to do it personally.
An agent might FaceTime or Zoom you while walking you through the home. You might also receive a 3D rendered walkthrough of the house you want to buy. It’s quite the time to be alive right now.
The Supply Might Be Short
There are some people looking to trade in their homes for bigger, spacious choices, but those who still want to wait for a more favorable situation are plenty. For that reason, the supply in the real estate market might be shorter than is comfortable with people.
Data shows that new listings have dropped to 27% and 19% when measured since March 1. The active listings right now are 8% lower than this month last year. The coronavirus outbreak might be affecting the market more than previously thought.
Mortgage Rates are a Volatile Thing
Interest rates in the mortgage market are suddenly in for a volatile ride. The Federal Reserve reacted to the pandemic by twice lowering rates last year. Credit cards and savings accounts have seen interest rates plummet, and mortgage rates should follow suit sooner rather than later.
It’s not safe to say that mortgage rates are lower right now. They might increase the next week, only to drastically fall a week later. The volatility could be an opportunity for those who want to pay their loans at a discount, though.
Choose a Broker That Knows the Situation
Experts say that if you’re going to choose a broker right now, go for one who is pragmatic about the whole situation. If you’re going to buy a house, chances are you won’t be sold on images alone. You should be able to get the whole package — digital tour and all — with a buyer who knows why you’re in the market for.
If you’re finally sold on a house, your broker should also be able to arrange for a notary. There are some states that also allow a buyer to close a deal on a home digitally. If you live in such a state, find a broker who knows how to make things happen digitally.
The world after the pandemic might be the different one we’ve all been waiting for. Masks aren’t the only thing that’s going to become a part of this new world. If you’re a first-time buyer, chances are that you’re going to see new processes in the real estate market after the pandemic dies down.
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