Coronavirus spreads very quickly and has a profound negative impact on different business sectors in the United States and other countries worldwide. Coronavirus has an impact on the economical growth and the real estate market. People worry about COVID 19 and its negative consequences.
Nowadays, the property market has already faced so many challenges and it’s still unknown how long this situation will go on. People don’t know if it’s good time to buy or sell properties today. And of course, this type of uncertainty causes the panic that negatively affects different aspects of the housing market.
It’s important to know that the housing market has been affected differently in different parts of the world. So, what happens next? Now, let’s make some predictions and try to find the answer to this important question.
Coronavirus and Its Impact on Mortgage Rates
As you probably have already noticed, mortgage rates have lowered during the outbreak of Coronavirus. Mortgage rates lowered from 3.8% to 3.13%. That means that people, who decide to take a loan today, will be able to reduce their borrowing costs and save a lot of money. It’s pretty clear that people have an opportunity to buy a house at much lower price right now.
It’s Difficult for Foreign Buyers to Purchase Properties Due To COVID 19
The statistics shows that a lot of foreigners buy properties in the United States every year. It’s expected that the percentage of foreign property buyers in the US will reduce significantly in 2020. It’s pretty clear that the process of home buying/selling in the United States has become very challenging for foreigners.
Construction Sector Has Been Affected By COVID 19
We all know that the United States has a well-developed building sector. Lots of new homes are constructed in the US every year. However, less new homes are likely to be built in 2020. So, buying a new home can be hard in the nearest future.
It’s fair to say that Coronavirus is a big problem for US builders these days. It’s worth noting that lots of US constructors purchase building materials from China.
The truth is that the US builders choose to purchase Chinese appliances, bathtubs, sinks and many other products from China.
Due to the outbreak of Coronavirus the supplies of building products has been stopped for an uncertain period of time. Also, it’s not easy to find a good alternative to the Chinese building materials.
That’s the reason why the process of building new homes in the US has been delayed significantly. But most importantly, it’s still unknown when the situation in the US building sector will go back to normal after Coronavirus.
What are the Predictions for the Spring Homebuying Season?
The spring homebuying season has already begun, but a lot of things still remain unclear. People don’t know what kinds of things may happen on the housing market in the future.
Experts say that home prices are unlikely to drop. However, some home buyers can benefit from the outbreak of COVID 19 even today. For example, it would be great to refinance the loan during the outbreak of Coronavirus. If you do this today, you’ll be able to get a loan with lower rates. This will allow you to reduce a debt and save a lot of money in the long term.
You may find it difficult to sell/buy properties during the outbreak of Coronavirus. If you are selling your house a traditional way, it may take you too long to find a buyer for your house. Nevertheless, you still need to pay the property maintenance fees until the buyer is not found. In order to prevent these kinds of things from happening, you should sell a house to a real estate investor.
Reputable real estate investors purchase houses for cash quickly. It’s also important to note that cash buyers choose to purchase properties in any condition. If you sell a house to an investor, it will not take you too long to close a deal.
Do you need to sell a house fast? If so, contact us to get a cash offer right now. At Candid Property Solutions, we are always looking forward to helping you with any of your real estate needs!