The coronavirus pandemic has had far-reaching effects on every aspect of society, from the job market to the economy to, yes, the real estate market. Even in the face of infectious disease, people still need a place to live. If anything, finding safe and affordable housing is more important now than ever. But is it viable? Is now a good time to become a homeowner?
Here’s some vital information to keep in mind…
Consider Renting Instead of Buying
Most of the time, when someone asks themselves “should I rent or buy a house,” the deciding factor is based mainly on their budget, family size, or the permanence of their living situation. In 2021, it’s the permanence and stability of everything else that’s in question.
Although vaccines have helped fight off coronavirus’ spread, the rush to re-open the economy has led to dangerous spikes in infection even after the worst was thought to be behind us. Worse yet, new strains and mutations of the virus are emerging, which could have dire consequences for both people’s lives and livelihoods.
That makes signing a lengthy mortgage contract a big risk right now. If renting is an option for you, it might be preferable, at least until society is fully on its feet again.
Housing Prices Are Through the Roof
According to a report by CNBC, the current turnaround for a house put on the real estate market is six days. That means that the time that elapses between a property being listed and it being sold is less than a week. That’s faster than it’s been in many parts of the country in years.
Why? In many cases, the current housing boom is being spurred by paranoia, although some of it is admittedly deserved. With social distancing still on many people’s minds, the desire to own your own property where you can insulate yourself from others is gaining traction. Unfortunately, increased demand also means increased prices, which has made it difficult for potential buyers of limited means to compete with their wealthier counterparts.
The Government Axed Interest Rates
For would-be homeowners, it’s not all bad news right now. One thing that makes buying property now an attractive option for many is the sharp decline in mortgage interest rates, a measure taken by the US government in an attempt to stabilize the economy and encourage public spending.
Although the government’s interest reductions were instituted in 2020, rates have remained low well into 2021, successfully driving more people to make the leap into homeownership, even despite bloated asking prices and widespread uncertainty about the future.
How long interest rates will remain low has yet to be seen, according to an article by eXp. Ultimately, whether or not now is a good time to invest in buying real estate property is a question only you can answer for yourself.