Posted on: 22 December 2020Share
Are you considering buying a home but not sure if it is the right time due to COVID-19? If so, it helps to know how it is actually affecting the real estate market so you can know if it's a good time to buy or not.
The Interest Rates
One big factor when it comes to buying a home is what the current interest rates are. After all, you do not want to buy a home when interest rates are high and then have them fall soon after you make a purchase. You'll be glad to know that mortgage interest rates are actually hitting record low numbers. The interest rates have been trending downward since the beginning of 2020, making it an excellent time to buy as you continue to see those interest rates drop. Don't worry so much about hitting the bottom of where interest rates will go in order to get that mortgage since the difference in a fraction of a percentage point won't make a big difference over a 30-year loan.
The Cost of Building Materials
Have you been looking to build your own home rather than purchase an existing home? Be aware that the cost of building materials is going up. This is because the pandemic has caused the manufacturing of building materials to slow down, which has created a limited supply for home builders. As a result, the cost of building a home from the ground up has increased. This may cause you to think twice about building your own home, especially if the increased cost makes it out of your budget.
Thankfully, this is not an issue when you buy an existing home. The house is already built, and it really depends on if home values in your desired area are going up or down. Work with a real estate agent to better understand how local values have changed.
You may have concerns about the economy impacting your ability to buy a home. Of course, this really depends on your personal situation and how comfortable you feel with your employment. A vaccine has been approved and hope is now around the corner for the pandemic to be over. You should have a good handle on how secure you feel with your employment, and if you are willing to take on buying a home. Of course, having continued employment throughout the pandemic is also going to help you be approved for a mortgage.
Reach out to a real estate agent to get more information specific to the area you want to buy in.