(Newswire.net — April 30, 2020) —
One of the biggest decisions that you will ever have to make in your life is when you go to buy a home. Buying a home has always been a decision that comes with a lot of different considerations and choices. The recent coronavirus pandemic has taught us many different things about buying a home that could change the real estate market for a long time.
Sensitivity Always Exists
One thing we learned during the coronavirus pandemic is that there will always be sensitivity in the real estate market. Over the past month, the real estate market has essentially come to a complete halt as many people have delayed searching for a home. At the same time, the amount of people that would qualify to purchase a home has declined due to an increase in unemployment. This shows that many different factors could always impact the real estate market.
Rural Demand May Increase
Another change that could be coming to the real estate market is an increase in the demand for properties in rural markets. Traditionally, many people have wanted to live in or near major cities. These markets tend to be more densely populated as they provide closer proximity to employment centers. However, with coronavirus making it riskier to be around more people, there will likely be a shift where there will be more demand for rural properties. Further, a lot of people will see a permanent change where they spend more time working from home. This could put further pressure on real estate markets in and near bigger cities.
Demand for More Space
Another change that could be coming from the coronavirus outbreak is a higher demand for more space. While there has been a trend to live in communities with smaller homes and more shared amenities, this could change as people need to isolate more. Due to this, people will likely start to seek out housing that will have more space. If you have to spend more time at home, a larger property will give you more room and comfort. Further, if the pandemic continues and someone in the household becomes sick, you will be able to isolate them more easily.
Lenders are Willing to Work with Customers
While there have been a lot of challenges during the pandemic, which includes a large spike in the unemployment rate, we have also found that many lenders are now willing to work with their customers. While there is not yet a program in place that will guarantee that a lender will accept a forbearance of payments, many major companies are willing to work with their customers. To have this established, you will need to call your mortgage lender and work out a plan with them. Some relief options can result in payment delays for 60 days or more.
Low Rates Could be Here to Stay
For the past decade, people have likely taken for granted the historically low mortgage rates. While rates started to increase in 2017, they have come back down. Due to a sizable drop in the 10 year treasury, mortgage rates are now at their all-time lows. While it remains to be seen if mortgage rates will drop any further, refinancing into a lower-cost loan could provide some relief to customers and homeowners during the coronavirus pandemic. This could also make it easier for people to purchase a home.
Virtual Tours Usage Will Increase
The entire process of buying a home during the coronavirus pandemic could be changing as well. The usage of virtual tours has increased a lot over the past month. As the technology advances, the need to see a lot of homes upfront will decline. Now, you will be able to complete a lot of your searching online, which reduces the need to go into someone else’s home that is also being visited by others.
Ultimately, the coronavirus pandemic is going to have a major impact on our lives. One area that will not be immune to this will be the process of buying a home. Overall, the coronavirus pandemic has taught us a lot about how buying a home could change in the future.