As with everything in 2020, this has been an interesting year in the real estate market. We spoke this summer about the hot market, low-interest rates, and buyers on the hunt for a new home. With
Is Now the Right Time to Buy?
Dated: September 11 2020
Considering purchasing a home in today’s environment might seem unusual to some, but to many, it’s a tremendous opportunity. The global pandemic should not dissuade homebuyers. Buying a house can and does still make sense for many buyers due to several unique conditions. By working with The Couture Group, you will be able to navigate all of these factors in determining your best timing and approach in finding the home of your dreams.
Record Low Mortgage Rates – The combination of lower borrowing costs and interest rates make this a financially-attractive time to buy. This month rates on a 30-year fixed mortgage dipped to 2.98%, according to Forbes.com. Borrowing costs have remained historically low since the 2007-’08 financial crisis, which creates a potential fiscal opportunity for buyers.
Strong Demand – While many have been adversely affected by the economic conditions caused by the pandemic, not everyone is experiencing the same thing. Many buyers who were prepared to make purchases in the Spring are now restarting their searches as things began to reopen in May and stay-at-home orders and restrictions lifted. Colorado was experiencing a tight inventory of homes since well before the pandemic settled in, and that scenario has potentially even grown stronger in the current market.
Steady but Rising Home Prices – As we’ve talked about before, home prices remain consistent and have even risen slightly, which is good news for homeowners needing to sell before they can purchase their new home. Nationally, on average, there is still a very tight inventory of homes to buy, which is preventing the housing market from dropping. In fact, the mix of buyers and tight inventory helped boost median home prices by 4.1% in June, according to Oxford Economics. At this time, every day a buyer waits, the cost of their potential new home could rise, so it’s essential to act fast if you are ready to purchase.
Easier to Sell Your Current Home – Once again, tight demand plays in the current homeowner’s favor because so many people took their homes off of the market or chose not to list them as the pandemic unfolded that the inventory of homes to purchase remains low. Due to COVID-19 restrictions, new home building schedules have been slightly delayed in some cases. This translates well for those looking to sell their current home because it could mean a higher sales price and a faster sale.
Cushion for Buyers – Despite employment uncertainty and shaky economic conditions, buyers are making purchases with confidence. The Cares Act, passed by Congress in April, included a 12-month forbearance option for borrowers with federally-backed mortgages. The goal was to reduce stress on housing market delinquencies. Other lenders have followed suit to provide relief and many have expanded their forbearance rules. Many buyers might feel safer making a large purchase even during uncertain economic conditions with these options in place.
Do What Feels Right – Making the decision to purchase a home is not always tied to markets or timing, which is why some will find this a good time to buy and others might choose to hold off. It comes down to if you find the right house at the right price and feel comfortable financially, then you should act.
In closing, many called for the housing market to drop due to the pandemic, but the fact that it has remained steady and demand and pricing continue to rise are a testament to the strength of the housing market at this time. Contact The Couture Group today at 303-459-2162 or via email at email@example.com and get started on your journey!!
At The Couture Group we are a team of experienced and dedicated professionals who bring a wealth of knowledge and expertise to buying and selling real estate! Holly Couture founded The Couture Grou....