With the COVID-19 pandemic affecting the world in ways not seen for generations, the housing
market has been anything but certain. With widespread job loss, fear of what the future may
hold, and turmoil all across the world, it can be hard to consider a huge purchase such as a
home.
Luckily, there are mortgage professionals who are ready to help guide prospective homebuyers
through the homebuying process and provide advice as to the best course of action in these
uncertain times. ]
What is the Current State of the Housing Market?
Now that the world is returning to a more normal state, we can see that 2021 is offering new
opportunity to certain homebuyers, while others should continue to wait and see.
Interest rates sharply declined last year and by all estimates it appears that these rates will
continue to remain low over the next few years. For those looking to apply for a mortgage, this
is great news as their monthly payments should stay low and their budget for the new home
will be larger overall.
Unfortunately, this also means that homes are in high demand and sellers have fully capitalized
on this by raising their prices. This has created intense competition in the marketplace as
buyers are demanding houses that are in short supply.
What Makes Homebuying Different in 2021?
Coronavirus restrictions, fear of disease, and general uncertainty are still very much a part of
our lives. This has forced realtors and those who work in the housing market to slightly change
their ways. However, the internet and technology make adjusting to the lack of in-person
meetings much easier.
Video conferencing, virtual tours, and online listings all give prospective buyers insight into
some aspects of homes which can then allow them to decide if they want to see the house in
person and potentially make an offer.
While these new systems that rely so heavily on technology may not be the way real estate
always operated, it is seeming to be the future of the field.
Bottom Line: Is It a Good time to Buy a House?
If you fit the following criteria, this might be the perfect time for you to purchase a new home:
Stable Income. If your job was essential throughout the pandemic and there was never
any chance of you getting laid off, you are well-positioned for buying a home in this
market.
Good Credit Score. While what is considered a “good” credit score may vary slightly
based on who you ask, you’ll want to strive for a score above 650.
Money in Savings. If you have been effectively saving for years before the pandemic,
you likely have plenty of money in savings to be used as a down payment on your new
home.
Low Debt-to-Income Ratio. Ensuring that you have your debt under control and that
your income is steady and stable enough to make mortgage payments as they come is
an excellent position to be in for those considering buying a home.
If you are considering buying a home in this housing market, a consultation with an experienced
mortgage professional can help you navigate the process.
