The current COVID situation is changing our definition of what 'normal' is. It is causing many families to adjust their normal routines and also change plans of homeownership or making a move. So naturally, I am having more and more people ask, "How's the market due to COVID?" Well, I will answer that question for you right now. Whether you are wanting to buy, sell, or buy and sell....I've got you covered!
Buying in COVID
Buyers are not slowing down in this current situation. Due to interest rates being at an all-time low, buyers are taking advantage of some awesome rates and getting into their first home and making a step up (moving into a home that is larger and in higher price point). We are seeing interest rates as low as 3.275% (based on credit scores). We are also seeing many buyers taking advantage of the Rural Development, 100% financing option to purchase their first home. There are also down-payment assistance programs for buyers who may not have access to a lot of cash on hand for a down-payment.
It is also worth mentioning that precautions while shopping for a new home are being taken. In a lot of cases, homes on the market are being vacated by the current owners to allow for easier and safer showings. Those homes that are still being lived in while on the market may have special requests such as taking a virtual tour or having a limited amount of people while conducting a showing. You should consult your Real Estate Agent about how to address any specific concerns you have.
So, my dear potential buyers, the answer to your question is YES! It is a great time to buy, let's get this ball rolling by getting you in touch with a lender. For more information on buying a home during COVID19, visit our website.
Dear potential sellers, GET OUT! I need your listing! Seriously, buyers are out there looking for a home like yours. Refer to my response to buyers. They are taking advantage of super-low rates. With this in mind, the real estate market needs to keep a healthy supply of inventory to meet the demand.
When sellers are able to, many of the homes on the market are being vacated (but still staged) to allow for safer, easier showings. Those sellers who are not able to vacate, have been utilizing other methods of reducing the risk of exposure. Talk to your listing agent about setting up a virtual tour of your home in their advertising. Doing this will allow potential buyers to get a sneak peek and determine whether your home will suit their needs. If they take the virtual tour and like what they see, they will have their agent set up an in-person tour of your home to get a first-hand look. Trust me, agents who are working with buyers do not want to risk exposure to the virus either so they are encouraging virtual tours to their clients when they are available.
According to the Greater Baton Rouge Multiple Listing Service, when comparing the sales of 3 bedroom homes in April 2019-June 2019 to the same time in 2020 (when COVID-19 shutdowns began), we can see that 82% of the homes listed in 2020 have sold which is an increase compared to only 77% in 2019. The average price sold in relation to asking price remained about the same at 98%. This means that sellers were getting close to if not full asking price for the sale of their home.
What this news means to you is that more than likely, if you list it someone will buy it! For more information on listing your home during COVID-19, check out our website.
Go Forth and Conquer
So now that we know that our dream of homeownership does not have to be deferred, it's time to make it happen! Consult a mortgage lender and a real estate agent to help you put your plan together and get it in gear.