There’s no doubt 2020 has been challenging.
A global pandemic coupled with an economic recession has caused heartache for many. One lesson we’ve learned is that life as we know it can change rather quickly. However, the effects of 2020 has also taught us the importance of having a place to call home and what the definition of home means to you.
Now, home has transformed beyond a place of refuge, comfort & security. It’s become a place that must fulfill needs that once existed outside the home. For many, a home now must double as a workspace, gym, school and/or sanctuary.
But what if your current home doesn’t meet your needs?
HOW TO NAVIGATE THE MARKET DURING A PANDEMIC
WHAT BUYERS & SELLERS SHOULD KNOW ABOUT THE ECONOMY & VIRTUAL HOME BUYING
Increase in demand for houses + a shortage of homes for sale = home prices appreciating rapidly.
Some may be cautious about entering the market right now, especially if they know they’ll face fewer choices & bidding wars. The truth of the matter is, even though homes have appreciated by a whopping 6.7% over the last 12 months, the cost to buy a home has actually dropped. This is largely due to mortgage rates falling by a full percentage point. Let’s compare…
2019 – $300,000 @ 3.75% = $1,389 monthly payment
2020 – $300,000 @ 2.72% = $1,302 monthly payment
Compared to this time last year, you’ll actually save $87 dollars per month (principal & interest) by purchasing that home today, equating to over $1,000 savings each year.
Is the economy still in a recession? Yes, however, that’s what makes it the perfect time to buy your first home or move up to a larger one. When volatile assets are facing recessions, hard assests, such as real estate, THRIVE. Historically speaking, residential real estate has done better compared to other markets during and after recessions.
Virtual Home Buying
In a year when we’re learning to do so much remotely, home buying is no exception.
From going to work to attending school, grocery shopping and even seeing our doctors online, digital practices have changed the way we live. But rather than delaying home purchases, buyers – alongside their trusted real estate professional – turned to the internet to do more than just a typical home search. In some cases, they bought homes without even stepping foot inside!
According to the National Association of Realtors®, throughout the pandemic, 1 in every 20 homebuyers purchased a house sight-unseen.
Real estate professionals are using digital practices to help home buyers and sellers walk through many steps of the process virtually. While following the regulations set forth by the CDC and local health officials, agents quickly empowered buyers and sellers with virtual tours, 3D floor plans, high-quality photos, videos, online open houses and more. Instead of viewing 9+ homes in-person (average), buyers now view most virtually, and only average 4 in-person tours. Virtual options helped buyers safely narrow down top choices, reducing the need to walk into more homes than needed.
National Association of Realtors® 2020 Profile of Home Buyers & Sellers cited their digital home search preferences:
VIRTUAL OPEN HOUSE
At a time when health & safety are top priorities, current technology is making it possible for buyers and sellers to move their real estate plans forward at their own comfort levels, even through a worldwide pandemic. For many, this means buyers no longer have to physically tour every home they want to see, and sellers don’t need to open their doors over and over again throughout the process. Safety can come first, and trusted real estate professionals are here to help.
THE PATH TO HOMEOWNERSHIP
With home prices still increasing & mortgages rates poised to begin increasing soon,
finding your next home makes a lot of sense. Here’s a list of a few simple
steps to guide you through the home buying experience.