In the past few weeks due to the coronavirus crisis, buying a home in the U.S. has become a struggle as the logistic and economic realities got affected by COVID-19. However, surprisingly in many cities in the US, the buying home activities have remained shockingly immune to the rapid spread of the coronavirus across the U.S. The parties involved in the transaction are completing their transaction by using contactless methods. However, in certain cities, they have imposed stay-at-home orders and non-essential businesses have been temporarily closed derailing purchase and sales of many items.
Buying a Home during the COVID-19 Outbreak
Most potential buyers across the country had prepared themselves for the spring buying season even though the supply of houses available was frustratingly low. This was particularly true for areas where there are stringent limits on building new homes. This had resulted in price gain and the buyer’s budgets were pushed to the limit. Now coronavirus has hit the country and the hopeful buyers must have believed this to be a good opportunity for buying a home among the prevailing uncertainty. Although it may still happen, the basic challenges for several buyers are still in place at the moment.
Many home sellers have removed their homes from the listings as they have no intention of keeping their homes languishing indefinitely. Some of the home buyers have not felt the full economic implication of coronavirus while others may experience just minor difficulties. People belonging to these two categories are likely to stay active in the market albeit a bit cautious. They will be keen to take advantage of lower interest rates and keep their plans on track as much as possible. The coronavirus situation is that many buyers are looking for homes but little or no houses available for buying.
Hold On to the Down payments
The home buyers who are on the verge of buying a property normally keep their down payment funds in a saving account. The stock market volatility due to the coronavirus outbreak in recent weeks has confirmed the fact that it is a good idea to do so. If somebody had invested in a brokerage account last year as he or she had plans to buy a home this year during spring, may have lost the resources necessary to take a good opportunity. However, even the potential buyers who made the right economic decisions might be stuck at the moment. The money lying in the savings account for down payments cannot be used right now. Most people will try to hold onto the money until they find out how the coronavirus crisis is going to affect their personal finances. A family earning a decent income may not be earning the same amount any more next month onwards.
Slight Uncertainty Everywhere
The battle to maintain the small business solvent has begun and we can already see many creative business tactics within the real estate industry. Despite the situation, it may be an overstatement to call the home buying situation as completely seamless or more efficient during an unprecedented period. The appraisers have to visit the properties to do their work and they may want to prioritize their health first before walking into an unfamiliar place. Lenders are overwhelmed with refinancing requests at the moment and the mortgage market is changing rapidly.
As the world situation related to coronavirus crisis unfolds, and as you are trying to keep safe, make sure that you are considering alternative options. It might be a good idea to build a semi-custom home. Vitale Homes is a good option for this in Florida.
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