Coronavirus commands the news headlines these days, but the global pandemic may actually have some hidden benefits for would-be homebuyers. While it may sound surprising, wannabe homeowners may realize there's a silver lining in the midst of the chaos. And that's good news for those who have set their sights on new digs in 2020.
So how is it possible that buying a home during a pandemic could have an upside? Let's dive in.
The three potential upsides for buyers in 2020
When it comes to residential real estate, many who are considering buying a home might wonder if the time is right. It's important, as an agent, to communicate the silver lining in this situation. Here are three potential upsides for your home-hunting clients.
1. Interest rates on mortgage loans and pricing are favorable
Interest rates are great for borrowers right now, hovering at historic lows, meaning your clients could stand to save money over the life of their home loan...a lot of money. Those low interest rates also mean they won't have to think about refinancing in the near future, if ever. Communicate these benefits with your potential homebuyers so they understand this may be the perfect moment to strike.
2. There may be less competition for inventory
For years now, we've seen tight residential inventory among both existing homes and new construction — something with which you are no doubt acutely aware. That, at times, has led to higher asking prices and less time for properties to be on the market. In some markets, bidding wars have become common as a result — something sellers just love, but buyers, not so much.
Industry leaders are bracing for a quick decline in home sales volumes now and a slow but steady recovery from summer on. As a buyer, that means your clients could find more options on the market within their price range and fewer buyers vying for the best properties.
3. In times like these, there's no place like home
It goes without saying that most of us are spending a lot more time at home right now. But not all of us are in ideal living situations to spend the majority of our hours there. Some of us live in cramped apartments or have roommates and less privacy than we'd like. Some of us wish we had more space for at-home entertainment such as a spacious basement for an at-home theatre experience, an open-concept kitchen, a spare room for added privacy and a break from the chaos, or an office for homeschooling the kids. And a yard, well, that would be a dream for those stuck in small spaces, right? Having the right place to hang your hat means everything right now. So if your clients are not currently in that space, now may be the ideal time to move on to something bigger and better.
Helping buyers find their quarantine dreamWhile the public health and economic situation can be trying, the good news is this is a great time to foster relationships and help buyers know and understand the benefits to purchasing property now. In the end, you'll be helping people find a space where they feel safe and at home, a place where they won't mind waiting out the shifts happening in our world, and dreaming of brighter days ahead.