Is It a Good Time to Buy a House Right NowIf you’ve ever heard someone say, “with the way the housing market is right now,” you might wonder what exactly they mean. With the economic upheaval brought about by COVID-19 and regulation changes in the Federal Reserve, it’s left many noticing that prices are high and houses are going quickly. But what does that mean for a potential buyer today? There are reasons it’s more difficult to buy today, but also reasons this is a good time to start looking at homes for sale in Groveland, FL.

Downsides of Buying a Home Today

If you’ve heard people advise against buying a home right now, they may have a good reason. There are a number of factors that make it more difficult.

Tight Credit

Due to the instability in employment right now, banks are being more cautious about offering credit. They may require a higher credit score, strict employment proof, and higher down payments to move forward with buying a house. If your credit is on the lower end, this could make it more difficult for you to secure the loan needed.

Limited Homes and Support

Some people are very hesitant to sell their homes right now, not because of economic factors but health-related ones. Having potential buyers and agents walking through your home is not desirable during social distancing, and working from home may make it difficult to schedule these viewings and feel comfortable.

Similarly, others who need to enter the home may be less willing, such as appraisers and inspectors. Because they may be working remotely, there has been a trend of more conservative appraisal values, forcing the buyer to come up with extra money or the seller to lower their price.

Advantages of Buying a House Today

While these things can make it more difficult to navigate the process of buying a home, there are other factors that make it a great time to take this step.

Lower Interest Rates

As the impact of COVID-19 became clear, the Federal Reserve quickly dropped the prime interest rate to zero, lowering what was already a low rate. This means that buyers can purchase homes at extremely low-interest rates, leading to lower payments over the course of their mortgage. Many experts believe this rate will stay low for some time, but there is no guarantee.

Less Competition

Each year, new homes are built to keep up with population growth, but this volume was lowered significantly due to the pandemic. While this would usually mean that demand outpaced supply, this was not the case because of the economic hardship many people faced. Many buyers were no longer able to purchase, leaving a large number of homes empty and available.

Virtual Tours

To avoid close contact, most real estate agencies began to offer 3D virtual tours of homes, which can also save a lot of time for buyers. Rather than multiple appointments and travel time, buyers can easily review many properties on their own and decide which ones they’d like to see in person. This also means that if you are planning to move to a new location due to your job now being remote, you can tour homes in that area without having to travel.

Developers Trying to Generate Revenue

Because of the slowdown in the economy and demand for homes, local developers and residential builders may have found themselves upside down on some properties. In order to continue building and maintain revenue, they may be willing to sell at a lower price and offer other incentives to get into a home quickly.

The Bottom Line

Any time you decide to buy a house, there will be market factors that impact the cost, speed, and options available to you. For many people, this is the right time to buy a house due to low interest rates and the availability of certain homes, while others may wait for less stringent credit requirements. However, changing workplace norms may also mean you need more space for a home office or are able to move to a more rural location after being tied to a large city. If you are in a place where a new home makes sense for you, there are ways to take advantage of the current market and find a new home in an economically sound way.

Posted by Florida Realty Marketplace on
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