Buying a home is a massive expenditure, and it pays to be well-informed about the home you are planning to purchase. That’s why you hire a real estate agent, ask questions, and shop around. The current COVID-19 pandemic has changed how a lot of industries operate, and real estate is no exception. With a change in operations has brought changes to the real estate market across the country. As everyone is scrambling to find the answers, it makes sense to slow down ad address false rumors. Here are 5 rumors that have come up a lot, recently, and we break down why they are incorrect.
There’s less competition now thanks to the pandemic
The prevailing belief is that because of stay-at-home orders and social distancing, there will be fewer people out looking for homes. However, low interest rates are a strong motivating factor to get out and secure a loan with a good rate. In addition, those who are looking to buy are more likely to be stable financially, and therefore more serious about buying. Be aware that the historically low interest rates have triggered a wave of home refinancing applications. This has slowed down the time it takes for lenders to process applications of any kind. When you go to get pre-approved, be sure to have a somewhat flexible timeline for the time being. Being pre-approved for a loan will help you stand out in the field of potential buyers.
People aren’t wanting to sell their homes during the pandemic
In truth, people are very much wanting to sell their homes. Recent industry data from the National Association of Realtors suggests that 77% of potential home sellers are planning on selling once restrictions are lifted. Many have already put their homes on the market so the house can sell sooner. Many people are looking to move out of the dense urban areas and are looking to move to the suburbs. Some are even looking for homes with acreage to further spread out.
We are in a recession, so there will be a real estate crash as well
Yes, the COVID-19 pandemic caused an economic recession. No it won’t cause a housing crisis like in 2008. This article we wrote explains why. While we can’t know the full extent of the effects of the pandemic and the resulting recession until after it is resolved, we do know three things: 1) Houses are staying on the market. 2) More homes are being put on the market daily. 3) As travel and stay-at-home orders are lifted, more buyers will come out to buy the houses.
Home prices have dropped, making for an easy deal
In the same train of thought as above, home prices haven’t actually decreased as a result of the Coronavirus. In fact, due to the national housing shortage—as well as a shortage of homes in Idaho—prices have actually increased close to the normal national average. The link to the recession article above has more information as well as links to more in-depth coverage. How much the prices have increased depends heavily on the market. Talk to your real estate agent for in-depth price analysis.
You shouldn’t buy a house without setting foot in it first
This used to be the rule of thumb. How would you know what the house is actually like based on the listing photos and descriptions without seeing it in person? Thankfully, technology has greatly increased to serve the buyer. Thanks to virtual tour technology, you can tour a home on your computer with ultra high-definition photography of every inch of the house.
Take a virtual tour of one of Build Idaho’s listings and see for yourself.
In addition, video chats over FaceTime, Zoom, and Facebook between you and your agent allow you to tour the home in real time, ask questions, and get feedback as if you were on a regular tour.
There is a lot of uncertainty at the time, and we are doing our best to give our clients the sale high level of service as we did before the pandemic, as well as obeying public health best practices. If you are ready to buy or sell a house, contact us about everything Build Idaho can do to help you on your journey