Tag: COVID19

Homebuyer Tips: Moving During Uncertain Times

marlongamezrealestate

Our country faces challenges all the time. Whether it’s a recession, natural disaster or, yes, even a global pandemic—no matter what’s happening in the world, life still happens. Today, many families find themselves needing to move at a less than ideal time.

Moving is always stressful, but moving while trying to navigate certain restrictions and safety regulations can quickly become an overwhelming undertaking. While many may attempt to reschedule their moves to less turbulent times, some families can’t delay the process. Maybe you sold your home before the pandemic hit and now are left to figure out the best move.

If you find yourself needing to move during these challenging times, here are some tips to make the process as smooth as possible:

Get Rid of What You Don’t Need

Decluttering and downsizing is something you should implement during any move, no matter the state of the world. Many of us have recently been spending more time at home due to stay-at-home order; use the downtime as an opportunity to go through your belongings and get rid of what you don’t use, need or want anymore. Don’t waste time and money by moving items to your new location that are just going to get tossed out soon anyway.

Go Virtual

The safety of your family should always be your top priority. Complete as many necessary tasks as you can virtually to avoid traveling when it isn’t safe to do so. Many real estate professionals have been offering virtual home tours during the pandemic, and this practice is something that is likely to continue moving forward. Communicate with your agent via video chat, phone and email as much as possible. Important paperwork and other steps involved in the closing process are often allowed to take place online during times of crisis.

Assess Your Financials

Any nationwide emergency will likely impact the economy, putting many Americans in a state of unease. Today, the country is facing massive economic upset and widespread layoffs; according to the National Bureau of Economic Research, the U.S. officially entered a recession this February. Before you fully commit to moving, make sure you understand your financial situation and what you have to work with monetarily.

Ask yourself: what’ll my income look like over the coming months? How much cash and credit capacity do I have? Do I have a plan in place to stay on top of my bills? With these answers, you can start to get a sense of how your budget will change and if you can afford a move.

Keep an Eye Out for Deals

Times of crisis can offer the best investment opportunities for those who are prepared. When the masses shy away from investing in real estate due to economic uncertainty, it might just be the best time to buy. When the housing bubble burst in 2008, most were running away from the market, but the smartest investors made tremendous deals during that time. Because real estate tends to slow in uncertain times, sellers are typically more willing to negotiate. Today’s mortgage rates are at a record low so, while it may seem stressful, now may actually end up being the best time for you to purchase a new home.

Do What You Can on Your Own

Services you might typically use like shipping and professional movers are likely to be disrupted along with most other industries. To avoid paying hefty service fees or endure long wait times, and to ensure the safety of your family and workers, you might consider tackling as much of your move on your own as you can. Consider doing your own packing and moving, and realize that if you’re shipping any of your belongings long distance they may take longer than expected to arrive. If you do need to pay for assistance, research different companies and ask questions about how their operations have changed during the pandemic.

Moving is no easy feat, especially when turbulent times put a strain on your plans. Do your research, educate yourself and make sure safety is your top priority!

What Home Buyers and Sellers Can Expect in 2020, as Pandemic Revises Forecast

marlongamezrealestate
Covid-19 written on a road, dark clouds, coronavirus epidemic crisis concept
Delpixart/Getty Images

There are so many ways in which 2020 is not turning out the way most Americans expected. In terms of real estate, we were hurtling toward a busy spring season. All the economic indicators looked strong, boosting buyers to battle it out for a limited supply of homes. But then the coronavirus pandemic swept across the nation, upending those expectations and forcing us to reassess the year ahead.

Home sales have fallen and real estate listings dissipated as the COVID-19 pandemic made many buyers and sellers think twice about buying, selling, and potentially even moving with a deadly and highly contagious virus on the loose. But home sales will rebound in the late summer and fall, driven by millennials eager to own a home of their own, according to a revised forecast for 2020 by realtor.com®’s economists.

Markets in smaller, more affordable cities and surrounding suburbs could be particularly brisk as folks reevaluate the appeal of big-city life during a pandemic. But realtor.com also predicts the housing market will experience a second round of pain in the form of another downturn toward the end of the year.

Related Articles

“COVID-19 has really dramatically changed the way the housing market is going to perform this year,” says realtor.com Chief Economist Danielle Hale. “We started off with the potential for the best year in more than a decade for sales. But we’re going to see ups and downs as the market grapples with an unsteady economy. This will affect buyers and sellers across the board.”

Sales of existing homes are expected to drop about 15% in 2020 compared with the previous year. Realtor.com is anticipating 4.5 million sales this year, compared with 5.34 million last year. The company’s economic team had originally forecast, late last year, that 5.25 million sales would take place in 2020.

While many cash-strapped buyers have eagerly anticipated prices falling, triggering a real estate bonanza similar to the Great Recession, that’s not likely to happen this time around. That’s because the number of homes on the market has fallen, by about 45% in April, and so has demand from buyers. There’s no glut of for-sale homes driving prices down.

“Sellers don’t like to reduce their prices. So they decide not to sell,” says Hale. Instead, they just pull their homes off the market.

The median price for an existing home is expected to hold steady, rising by just 1.1% in 2020 over the previous year.

“Were it not for COVID-19, we probably would’ve seen prices rise in the 2% to 4% range,” says Hale. That’s because even before the pandemic, available housing fell well short of demand, pushing prices up.

Buyers shouldn’t despair. Record-low mortgage interest rates will offset some of the slightly higher prices. Rates are expected to be around 3.2% this year, down from nearly 4% last year. And they could even fall into the 2% range later in 2020, amid further financial uncertainty.

The problem is, buyers may have a harder time snagging those low mortgage rates. Lenders are requiring higher credit scores and down payments, in some cases, as the nation grapples with unemployment rates that are likely in the 20%-plus range.

Another downside for buyers is that home construction is expected to slow, exacerbating the housing shortage. Housing starts, or the number of homes on which construction has begun, are expected to drop by 11% this year. Before the pandemic stalled construction sites in certain states, realtor.com had expected starts to jump by 10% in 2020.

Where buyers go shopping could also shift in the wake of the coronavirus. Those cooped up in small apartments in pricey cities may seek out smaller cities and suburbs where they can get more square footage and a backyard for less money. And with unemployment as bad as it’s been since the Great Depression, buyers may also seek out these areas for their lower prices.

“The experience of being at home for a long period of time has everyone rethinking their priorities,” says Hale. “People are recognizing space is more important, so they’re looking for more affordable areas where they can have more space at the same price.”