The impact of the coronavirus on the housing market
So, what state is the housing market in right now? While that depends on how bad an outbreak an area is suffering, most markets are feeling some sort of hit.
For those who are determined to buy a home, there is opportunity out there.
According to Rayn Serhant of Bravo’s “Million Dollar Listing New York,” “This is the best buyer’s market I have ever seen in my career. Sellers are nervous, there’s excess supply, and interest rates have been hovering at historic lows. You can own a home for less per month than you can rent an equivalent property in most areas.”
With fewer home buyers out there looking, you have less competition in your way. The window of opportunity for buyers won't stay open forever. The National Association of Realtors data shows that there was a housing shortage prior to the outbreak and the temporary softening of the real estate market will likely be followed by a strong rebound, once the quarantine is lifted. This pent-up demand could eventually push home prices higher. That means the time to find bargains is now.
Bottom line: If social distancing has made you realize you don't love the place where you're currently spending most of your time, it's a good time to consider buying.
How the housing industry has adapted to keep buyers safe
Although it's a scary time to be out and about checking out real estate, it is still possible to do so and stay relatively safe. The industry has rapidly adapted, introducing approaches that minimize exposure to the virus.
Many agents are now working remotely and conducting most of their business virtually.
While open houses or showings may not be easy to arrange because of quarantine or other safety issues, real estate listings have stepped up to the plate by offering virtual tours.
While those who are immunocompromised may want to stay home, if you're otherwise healthy, it is also still possible to see some homes in person. Most realtors are providing hand sanitizer and shoe covers at the door and it is now customary for the listing agent to open all doors so that homebuyers can explore closets and other enclosed spaces without touching anything as they look.
If you do make an offer that's accepted and you head to the closing table, real estate agents and attorneys are also adapting to remote closings, to keep you out of a crowded conference room.
The takeaway from all this? It matters more than ever to get pre-approved for a mortgage to calculate your home-buying budget accurately.
Information provided by Realtor.com