Should I Buy a House During the Coronavirus Pandemic?

Buy a House During the Coronavirus Pandemic

The COVID-19 pandemic drastically changed our lives and how we operate, both day to day and in planning for the future. Most of us have experienced a stay at home order or quarantine throughout the year. However, in the midst of this, life events still dictate that we continue moving forward.

Buying and selling homes are some of life’s financial milestones that continue amidst the pandemic. Despite the current state of things, the process can be beneficial for both buyer and seller. However, if you are looking to purchase a home, there are a few things you should take into account.

Personal financial situation, current real estate trends, and how the process has changed due to COVID-19 are the main points discussed in this article. Were you shopping for a new home before the coronavirus pandemic hit, or are you now in the market because of the life changes it has brought? Considering these factors will help you determine if now is the time for you to purchase a new home.

Personal Situation: Finances & Job Security

Your finances and job security can have a massive impact on whether you are ready to purchase a house. This statement can be true even outside of the pandemic. However, it is crucial to consider your current industry and how secure it seems to be due to the novel coronavirus.

Have you set aside enough in the way of savings to make a down payment? Is your industry projected to maintain or grow despite the pandemic?

It would be best if you took care not to overextend yourself. Remember that there are several expenses involved with a home, including insurance, maintenance, and taxes. Although you may not want to miss out on some of the current deals surrounding home sales, you want to make sure you prepare for the commitment of purchasing a new home.

However, there are certain benefits to purchasing during the coronavirus pandemic if you are in the position to cover the costs involved with a new home. With many now working and schooling from home, the ability to move into a new place could significantly increase the quality of life for you and your loved ones. Aside from that, there are financial benefits as well.

Real Estate Trends

While considering purchasing a new home during the pandemic, it’s essential to take a look at the local housing market.

Mortgage Rates

Although there may not be a large dip in the home prices themselves, interest rates for home buyers have continuously reached record lows since the start of the pandemic. These new rates provide an excellent incentive for homebuyers who are shopping the current market.

The rate for a 30-year fixed mortgage has seen an average of 3.54% over the past year. The end of October 2020 saw a dip of 0.45% lower than the last year’s average, falling to 3.01%. These current low rates can help home buyers save hundreds of dollars each month.

If you would like to find out what rate you qualify for, this free resource can determine your potential rates. It is easy to use without affecting your credit. Taking the time to compare rates is essential to finding the best deal for you.

Lending Requirements

It is worth noting that lenders seem to be tightening their processes. In some cases, there is an increase in minimum credit score requirements to 700 or greater. The required down payment may also show an increase, from 10% to 20%. These requirements can depend on the type of home loan, and there are several mortgage options for buyers.

Consider a New Build

Home listings have been more scarce, as the demand for people looking to buy homes outweighs the market for people looking to sell. The scarcity of homes for resale should encourage home buyers to consider building a new home rather than purchasing from previous homeowners.

A new build would allow for greater customization and the ability to tailor your home to your needs, whether consistent with life before the pandemic or updated to reflect the changes this year has brought.

How COVID-19 Has Affected the Buying Process

The process of physically shopping around and buying a home has changed in many ways. Many people will prefer to do the majority of their “looking” for a home online. Open houses and opportunities to view homes with real estate agents have become limited. Social distancing dictates how many people can view homes at the same time.

Many people are utilizing 3D home tours due to the fear both home buyers and sellers have had regarding the pandemic. These virtual tours allow those interested in purchasing a new home to determine whether they would like to purchase. Buying a home without first viewing it in person is something that we will continue to see more of during the coronavirus pandemic. This fact makes the ability to have 3D home tours essential.

Depending on your area, be prepared for potential delays in the home buying process due to local closures from government shutdowns. The impact of COVID-19 continues to ebb and flow, remaining unpredictable.

Buying a House During the Coronavirus Pandemic

Amid the uncertainty, it is natural to hesitate in making forward steps towards essential life milestones. The Morgan Taylor Homes team consists of expert real estate agents, engineers, and construction professionals. We are here to help you through the process of achieving the milestone of buying your new home during the coronavirus pandemic. Whether you are looking for a move-in ready or custom home, contact us at 480.626.1555, and we will help you find the home of your dreams!

Home Design Trends for Custom Homes in Arizona

By Erica | September 15, 2022

When you walk through a home that hasn’t been updated since the 70s, you know it. Wood paneling, upholstered furniture, sunken living rooms, and orange and green velvet are everywhere. These home design trends were all the rage in their time. But unfortunately (or fortunately), they faded out just as fast as they appeared. So …

Home Design Trends for Custom Homes in Arizona Read More »

Your Guide to Driveways: Alternative to Concrete

By Erica | August 23, 2022

If you have ever built your own home or made extensive renovations to an existing home, then you know there are hundreds if not thousands of choices to make and options to consider. It is honestly one of the primary reasons that homeowners turn away from new construction. But it can also be one of …

Your Guide to Driveways: Alternative to Concrete Read More »

5 Things to Consider When Purchasing a Lot

By Erica | August 9, 2022

Searching for your dream home can be quite a task. Especially when you just can’t seem to find a home that checks every box on your list. Of course, you can buy an existing home that is as close to perfect as possible and then complete renovations to your liking, but there is a better …

5 Things to Consider When Purchasing a Lot Read More »

5 Modern Kitchen Design Ideas For Seriously Upgrading Your Space

By Erica | July 21, 2022

Some design trends come and go, but one aesthetic that never goes out of style is sleek, modern design for the functional spaces in your home. Whether you’re an avid gathering host or you prefer a quiet night in, having the right modern kitchen design for your lifestyle can completely transform the overall look and …

5 Modern Kitchen Design Ideas For Seriously Upgrading Your Space Read More »

How To Buy A New Construction Home

By Erica | July 14, 2022

The home buying process can be an overwhelming experience, whether you’re a seasoned property owner or a first-time buyer. But if you’re ready to finally score your dream home and maximize the long-term benefits of this life-changing investment, then buying a new construction home is one of the easiest ways to build a stable, loving …

How To Buy A New Construction Home Read More »

5 Rustic Kitchen Design Ideas To Give Your Space A Cozy Makeover

By Erica | July 7, 2022

Your kitchen is the heart and soul of your home. But if modern minimalistic designs like these don’t exactly give you warm and fuzzy feelings, you might find yourself struggling to achieve the cozy kitchen corner of your dreams without compromising on great style. Sound familiar? Then it’s time to embrace the growing rustic kitchen …

5 Rustic Kitchen Design Ideas To Give Your Space A Cozy Makeover Read More »

Is Buying a House Advised Now with Rising Mortgage Rates?

By Erica | June 17, 2022

After a record low of 2.65% in 2021, forecasters projected mortgage rates to rise between 3.27% and 3.88% in 2022. Now they’re almost as high as 6% for the typical 30-year fixed mortgages. Normal variables that affect home-buying decisions may not necessarily apply this year due to unusual market fluctuations. High mortgage rates and other …

Is Buying a House Advised Now with Rising Mortgage Rates? Read More »

Will Home Building Costs Go Down in 2023?

By Erica | May 27, 2022

The home building industry has undergone a tremendous upheaval in the past 2 years. COVID-19 and other contemporary events have shaped the course of building your dream home by making it more challenging. Some people are comparing the rising interest rates and building costs to the 2008 real estate crash. Remembering those bleak real estate …

Will Home Building Costs Go Down in 2023? Read More »

Building a House During the Pandemic: Should You Wait or Start Construction?

By Erica | May 11, 2022

Since the start of the pandemic, home construction has gotten crazy. Droves of young buyers have left home and ventured East for new real estate opportunities. Whether from easing building restrictions or the chance to sell their home for a mansion, most pandemic people are considering building. It can be difficult to see these recent …

Building a House During the Pandemic: Should You Wait or Start Construction? Read More »

The 13 Custom Luxury Home Features in 2022

By Erica | March 30, 2022

You and your partner deserve to relax and enjoy the wealth you’ve acquired over the years. Common society is not willing to put in the hard work and dedication you have to acquire funds for a luxury home. This means you have more than enough license to spoil yourself with all the luxurious amenities that …

The 13 Custom Luxury Home Features in 2022 Read More »