COVID-19 has affected the economy as a whole in a very negative way, however, the real estate market isn’t as negatively affected as one might think. Research and statistics show that buyers are still interested during this time and there are people who are still interested in selling. Although this is an unusual and uncertain time, if you are in the market to buy or sell your home, now may be a good time to do so.
Although Zillow recently predicted that home prices will drop two to three percent this year, there is still good news about the future of real estate. 30-year mortgages are currently at an all time low of 3.43 percent which means now is a great time to buy or sell from a financial point of view. Due to these low mortgage rates, the Mortgage Bankers Association released data this past month that indicated mortgage applications jumped 12 percent in the week of April 19th compared to the week that came before.
What Buyers and Sellers Should Know
According to Forbes, 80 percent of prospective buyers have either delayed or stopped their home search. However, in spite of these numbers, it seems like many still want to buy. Of those who have stopped their home search, 28 percent still report looking at listing photos and 25 percent have taken video tours. Also, 30 percent of them reported looking at listing more often than they were before being impacted by coronavirus.
It’s important to note that some “wants” may turn into “needs” as a result of COVID-19, such as a home office. Also, buyers reported that these features were more important to them after the coronavirus: extra bedrooms (43.5 percent), open floor plan (45.7 percent), good lighting (45.7 percent), and kitchen style (50 percent).
Although the future is unclear for all aspects of life, real estate sales may not be as negatively affected as one might have previously assumed. In fact, now may be a great time to buy or sell!
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