We know there are bumps in the road when it comes to today’s economy and the housing market, and that’s to be expected under the current conditions. But there are some bright spots in all this uncertainty, particularly for the US housing market:
The Economy Will Bounce Back
Economies in China and South Korea are already starting to recover as the coronavirus gets more controlled.
No Imminent Housing Crash
Overbuilding has declined dramatically since 2008 — in fact, builders have been under producing, and banks have increased regulations to protect borrowers from subprime mortgages. If the “economic quarantine” is short, real estate could bounce back in one to two months. Because market fundamentals are strong, housing is safe in the long-term.
Spring Selling Season Pushed Back
Expect the market to jump again in late summer and early fall. Pent-up demand could lead to a hot market later this year.
Real Estate – Still a Strong Investment
During this pandemic, the home has become a safe haven, making it a very useful investment.
Buy Now if You Can, Wait if You Can’t
Mortgage rates are at historic lows, with some experts suggesting they could get as low as three percent. If you’re worried about your job, pause the home buying process. If you know you’re secure, now could be a good time to lock in a low-rate mortgage.
We’re here to help you in any way we can during these difficult times. Give us a call if you’d like to discuss the particulars of your specific situation.