There’s nothing like being quarantined for weeks or months to discover what you don’t like about your current home. Maybe it’s too small. Maybe it’s too big. Perhaps your open floor plan is more noisy than you expected it to be as your family grew. Whatever your reason, don’t think you have to wait until we are through the pandemic to find a home better suited to you.
If you are a serious buyer, now is actually a good time to buy a home. Here are some reasons why.
We are in a Buyer’s Market
A buyer’s market means there are more houses on the market than buyers shopping for them. Yes, there are fewer homes for sale, but you’re also competing against fewer buyers. Unmotivated or casual home shoppers have stopped looking for now. Also, people who must sell their homes may be more willing to lower the price to get it off their hands.
Rates are Still Low
Interest rates are holding steady, but they won’t stay lower forever. Lenders have seen an increase in mortgage refinancing over the past month. If that continues as it is expected to, rates will climb higher. How much does a 1% difference make on a loan? On a $160,000 mortgage, an extra 1% increases your payment by almost $100 a month and costs you about $30,000 more in interest over a 30-year term. That’s pretty significant.
Technology is on Your Side
Something positive that has come out of the current pandemic is the evolution of technology for both home shopping and the mortgage lending process. More real estate agents have started conducting virtual tours of homes for sale instead of just posting pictures of the home online. In many instances, depending on your real estate agent and lender, technology enables you to:
Shop for and tour another home from the comfort of yours
Safely rule out the homes you know you don’t want
Sign your loan papers digitally
Builders Have Inventory and Capacity
Nationwide, sales of newly built homes came to a screeching halt at the beginning of March. Spec homes are sitting empty waiting for buyers. Sales of these homes have increased in the past two weeks, but depending on where you live or where you plan to live, builders have houses already built, as well as the capacity to build homes faster than usual. As a result, they may be willing to provide more buying incentives than they normally would.
Our Bridge Loan Could Help You Move in Faster
First Bank Home Loans has a special loan to help you move in to your new home even if your old one hasn’t sold yet. The Bridge Loan is a convenient, short-term financing option for individuals or families who can’t or simply don’t want to pay two mortgages while waiting for their home to sell. See our other loan options here.
If you are serious about buying a new home and feel your job is secure, you may not find a better time to buy then now. Happy shopping!