In your desire to own a home – whether it’s your first one or not – you may want to ask yourself: Is it wise to buy a home now or to wait for better times?
On the positive side, the pandemic has done little to slow down activity in the real estate market, thanks to interest rates dipping to record lows as a federal approach to keep the US economy afloat. This could be the perfect time to go bargain-hunting.
On the other hand, the pandemic is still ongoing and health concerns could hamper you from finding opportunities in the real estate market —whether it’s in Charlotte, North Carolina or elsewhere.
Let’s take a look at some of these factors that could influence your decision-making:
Take a look at your savings. Realistically assess your capacity to afford a mortgage, on top of your other existing debt.
If you have the funds to buy a house and still have enough left to buffer the effects of the economic crunch made even worse by COVID-19, then the time to buy is now.
On the other hand, reconsider your decision if you have several other priorities at this time. The added expense of a home purchase could put more pressure on your finances.
Economics, political shifts, and the health crisis
When factors like economic trends, socio-political shifts, and events shaping the world happen, your only recourse is to move with and adjust to them. Being in the know of current events and trends can help shape your home-buying decision.
The ongoing pandemic is among today’s major game-changers, affecting virtually all aspects of life on a global scale. With the Feds keeping interest rates at their lowest to bolster consumer spending even in these rough times, mortgage rates are mirroring the record-low rates.
Now, high buyer demand stemming from the attraction of near-zero mortgage rates is barely keeping up with the present housing inventory.
A January update from the National Association of Realtors (NAR) pegged 30-year mortgage rates at 2.77%. In North Carolina, rates are slightly higher at around 2.90% for a 30-year fixed mortgage. A revitalized economy, as promised by the new Biden administration, could result in better home-buying conditions.
However, competition for homes will be tough and you need to act fast. NAR found that properties are currently staying on the market for an average of 23 days (20 days shorter compared to January 2020).
You will need to find ways to outbid competing buyers and negotiate almost flawlessly with sellers. Seriously consider working with a market-savvy and highly skilled real estate agent to increase chances of securing your ideal home.
New jobs, new construction
The last weeks of January saw fewer Americans applying for unemployment claims, as observed by NAR. Talks of a new stimulus package are seen to ease the financial burden on the employment sector.
In the construction industry, new jobs generated can translate to an increased home inventory. The present spate of bidding wars could be mitigated, home prices can correct to more buyer-friendly levels, and the field between buyers and sellers can be evened out.
In your search for houses for sale in Charlotte, Huntersville, and Ballantyne in North Carolina, let Valarie R. Brooks Real Estate assist you. Contact and meet the team by calling 704.488.5458 or sending an email to Valarie(at)ValarieRBrooks(dotted)com.