Before the pandemic, 2020 seemed like as good a time as any to buy a home. Now everything has changed.
During spring, buying a home was not a realistic possibility since most states were under lockdown. Now that states are opening up again, you may be wondering if now is a good time to buy a home. Or should you wait?
Here are 3 things to keep in mind as you decide if now is a good time to buy a home:
- Interest rates are lower – Meanwhile, interest rates are lower than ever! Average interest rates on thirty-year mortgages are around 3.25% with about 2.74% on 15-year mortgages.
- Lenders are becoming stricter – Lenders aren’t quite as willing to give out loans because the pandemic has negatively affected the economy. Their credit requirements may be stricter as well. You’re going to need to be in a strong financial situation (be financially secure and able to put down a larger down payment). If you are financially stable and your credit is solid, this shouldn’t be an issue.
- There aren’t as many sellers – Many homeowners removed their homes from the market or simply decided not to list their houses as a result of the pandemic. Financial situations changed for many sellers, which means moving may no longer be an option for them. Other homeowners simply don’t want to deal with finding another home in the middle of a pandemic.
The real estate landscape has altered significantly due to the pandemic. Depending on your situation, now might be a very good time to buy a home. For more advice, contact Randy Lindsay today.