The novel coronavirus pandemic has created a lot of uncertainties. The epidemic has shattered the world economy, and as it stands, no one knows when things will get back to normal. But even as the pandemic persists, many Americans want to remain positive and hopeful that things will change for the better.
One of the groups that have been affected the most by this pandemic is the people who had planned to buy their homes this year. Closure of businesses and stay-at-home orders seems to have shuttered their dreams of owning a house before the end of the year. But is it really the end of the line? Can you still buy the house amidst the coronavirus crisis? Should you take the risk and move to a new location?
Volatile Stock Market
For many people, the fear of buying a house during the coronavirus pandemic has been aggravated by the volatile stock market, fear of looming recession, and the runaway unemployment. Traditionally, spring is the busiest season in the real estate market. Many Americans were hoping to enter the real estate market in spring, but now spring is almost turning to summer, and nothing has changed. Making the most significant investment in your life with all the uncertainties seems daunting, but it is possible.
Taking Advantage of Low-Interest Rates
There are a lot of things that we don’t know about this virus, but experts warn the pandemic might last for months. So, if you find the right house that suits your needs, you have a stable job, and you can get financing at low rates, go ahead and buy that house. The same case applies to every other individual looking to purchase an investment property during this period.
A decade ago, a housing crisis gave homeowners and investors a unique opportunity to buy properties at historically low prices and finance them at extremely low-interest rates. Although the government is doing everything to cushion the citizens by providing cash support, keeping businesses from laying off people, and deferring mortgage payment, Americans might soon start disposing of their properties to survive.
Currently, it is a difficult time to make any bold predictions about the real estate market. For many years, people could put their money into a home, sit back, and watch as the property’s value goes up. Ten years ago, the real estate market suffered the first major blow from the Great Recession, and we are now staring at similar occurrences. Only time will tell whether the current measures put by the government will have any impact on the economy.
Expect to Embrace Digital Technology
Many realtors were in the process of closing transactions when the pandemic forced courts to close without notice. As you probably know, most of the registries and deeds needed to record the sale of a house are held in court buildings that are now closed. With many states under the stay-at-home orders, realtors have had to find innovative ways to complete transactions that were in progress and find a way to complete future sales.
Traditionally, the real estate industry has relied on in-person meetings to complete various processes when selling a property. However, in-person meetings are becoming challenging as people have to adhere to strict social distancing rules. This makes it necessary for the real estate industry to embrace digital technology in almost every step of buying and selling houses.
Virtual home tours have become the new norm in house hunting since the outbreak of novel coronavirus. Some real estate companies are utilizing video chat services such as Zoom or Facebook to showcase their listings to potential clients.
The Biggest Challenge
Realtors are doing everything to move the real estate market into the digital space, but they have to overcome the challenge of closing transactions. Although it is possible to complete most of the processes online, closing real estate transactions must be done in person. Some states such as Maryland, Wisconsin, and Iowa have adopted online notarization, but it remains illegal in the other states.
Even as you think about buying a house during the coronavirus pandemic, you should mind about your safety and that of other people. If you have coronavirus or isolating, you can consider delaying your move. Talk to your real estate agent and agree on the best time to close the transaction.
Krishna Murthy is the senior publisher at Finance XOD. He is not only the senior publisher but also the owner of Tricky Finance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.