Housing Trends During COVID-19: Is now a good time to buy? How are mortgage rates affecting buying?
COVID-19 has caused significant disruptions throughout the world. The health sector, economy, everything took a tremendous hit due to the coronavirus pandemic. The same is the case with the housing market in 2020.
During COVID-19’s initial days, the housing market saw a significant decrease as people are staying at home and not buying. However, it was amazing to see a remarkable turnaround from a record-breaking reduction in sales in April and May to the following months' rapid increase.
Thus, analysts are split as they are unsure where house prices will go in 2020, especially in highly desired areas like San Diego. Housing market predictions 2020 has become difficult due to the fluctuating events in the housing market.
After the remarkable decrease in sales initially, the low mortgage rates has motivated many potential buyers to buy. As the inventory is shallow, the house prices remain competitive. To conclude the lack of sales, people are trying to make up for the loss of time and are buying houses readily, causing a surge in prices.
Best Time For Sellers
This is the most opportunistic time to sell as:
- The housing inventory is low, and so the markets are competitive
- The sales of the houses have seen a price surge recently due to low inventory
- There are many potential buyers
- The sugar high that is being experienced by the market might not continue
Benefits For Buyers
The significant shift in buyers is because of:
- Low-interest rates
- Low mortgage rates
This surely means that it is a great time to buy; however, it is also a terrible time to buy due to the low inventory of homes.
This has put the buyers in a difficult position as they have two options, that are:
- To buy a house at low-interest rates
- To wait to purchase their dream resident at higher interest rates
The market has also seen a rise in houses' prices, which might coax the buyers to wait. But it might not be better because if the prices fall, that means the economy has taken a turn for the worse, and housing might not be a priority.
So, what is the final verdict? How is the housing market now for buyers and sellers?
Ultimately, it depends on you if you have a significant amount of money saved and have enough for a down payment. It is the best time to buy as you can find a home that best fits your requirements, it might not be perfect, but it is a good time. But, if you are struggling and are in between jobs, it is best to wait.
On the other hand, it's also the perfect time to sell as the house's inventory is low, and the potential buyers are high. So, it is possible that you will be able to sell the house at a great price.