Kicking off at the end of March, spring signals the start of homebuying season…at least it used to. As you know, the coronavirus pandemic has changed everything about this spring—including the real estate market.
The months of April through July traditionally account for more than 40% of all housing transactions. 2020 has been much different. This year's homebuying season started in January due to record low mortgage rates, low inventory and high demand. In fact, just prior to the pandemic, the housing market was hot—with sales at their best levels in over a decade and multiple offer situations part of the norm.
While we understand that there may be a short-term decline in activity due to the coronavirus, it could provide just the right opportunity to purchase a home at a good price. During the economic recovery, it is likely that housing will lead the way.
Here's what else you should know:
Mortgage rates are fluctuating, but still remain at historic lows.
In March, the Federal Reserve moved to stabilize the economy by passing a $2 trillion stimulus package and by cutting interest rates. This has resulted in keeping mortgage rates low. With the economy taking a hit from the health crisis, and many Americans dealing with reduced incomes, now may be a good time to look into refinancing. With rates at their current levels and housing prices remaining strong, homeowners could save money on their biggest monthly expense by refinancing.*
The housing market is alive but different.
Since March, construction has slowed and supply lines have been disrupted, resulting in fewer new homes being built which could lead to supply side issues in the market. Although there has definitely been a slow down in the purchase market, the industry has been quick to adapt with many new processes in place for virtual, no-contact transactions.
Home prices may be on the rise as inventory starts to tighten. However, mortgage rates are still low. If you can take advantage of these mortgage rates, it would be wise to do so when they're still low.
We will see new digital tools reshape the homebuying process. Expect deals to close without two people ever even stepping inside the same room together.
How are real estate agents and lenders adapting?
The same technology and tools that have made our customer experience so seamless have proven extremely valuable right now. Our lender partners with digital mortgage experiences are thriving. Some lenders even offer the ability to close on a home loan with 0% physical human contact.
While we all work together to get through this, please know that we are here help you with any of your homebuying needs. Please visit HomeTraq University for up-to-date information on the housing & mortgage markets.
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