COVID-19 has created problems for many industries, yet it has also created many opportunities in the same industries. This couldn’t be truer statement than when it comes to buying a home. There are both many good and bad influences COVID-19 has caused on the house market; here we will talk about the pros and cons of buying a home during COVID-19.
The Demand
COVID-19 has caused a phenomenon where there are simply less sellers and buyers of homes. This has driven up the price of homes and means it can be hard to find a home to purchase. However, COVID-19 has also allowed for some interesting scenarios to develop as people are unable to buy homes as often or frequently. This means homes on the market often have less competition to buy them. This leads to less bidding wars for houses as there are less offers and more flexible prices in general. This means you’re much more likely to get a house you have interest in at the price you saw it at, if not lower.
The Price Change
It would be irresponsible to ignore the large number of articles and news declaring homes are tending to go up in price. The lower number of buyers and sellers has driven up home prices. This can be a daunting fact and is something important to keep in mind if you wish to buy a home. However, it is still affordable to buy a home even now as mortgage rates have lowered. With the lower mortgage rate, it becomes much more meaningful to buy now.
The Future Market
The housing market is not an easy one to gage since COVID-19 has changed the game. Currently it’s easy to see the prices of homes have increased, but that does not mean they’ll decrease once Covid-19 goes away. There is a worry that once everything returns to normal the increased prices won’t go down. This means the temporary lowering of the mortgage will no longer be in effect, thus driving up home prices even more.
Though the pros and cons of buying a home during COVID-19 might seem complicated and buying a home might seem scary, there are many reasons why buying a home now might be the right call for you. The increase in price is being offset by the decrease in mortgage rates. The reduction in competition leads to more flexible pricing and less bidding wars on homes.
