Silver Linings? This is a good time to buy a home

During a surreal period of time when leaving our house is not advised, buying a new house might not seem like the most feasible thing to consider.  What could the possible benefits be of conducting such a life-changing transaction in the midst of such global upheaval? While it might seem counterintuitive, the positives of buying a home during this period could be one of the few silver linings that we see coming out of the COVID-19 situation and the reasons are multi-fold.
 
The most notable advantage during this period of time is financial. Mortgage rates are at a historic low and home buyers are in a perfect position to lock in rock-bottom low interest rates. Low rates benefit buyers in several ways. Most obviously, a lower rate equals a lower monthly payment. In many circumstances, this savings can be significant, to the tune of hundreds of dollars per month. A lower rate can also mean you have greater purchasing power, allowing you to buy more home. Since your payment will be less as a result of the lower rate you can potentially qualify for a more expensive home. Whether you opt for a lower payment or more house, you’ll save money in the long run by paying less monthly interest on your investment.
 
Another point worth consideration is the benefit of potentially beating the rush.  When the “all clear” is sounded and restrictions on life and business lifted, it is likely there will be a huge surge in real estate activity with an ensuing huge demand and very limited supply on the market.  While this is great from the perspective of those hoping to sell homes, it isn’t an ideal time to be a homebuyer.  Inventory will likely be limited coming out of this period and will quickly be gobbled up, reducing selection for potential buyers and driving up prices.  By beating that curve, you might save yourself some significant stress, have more choices and end up paying less.  
 
The good news is real estate is counted as an “essential” in states that have shuttered all nonessential businesses.  Local realtors have become quite innovative with new ways to help you during this time of crisis. There has been a huge shift to virtual open houses and virtual showings with Realtors using functionality like FaceTime, Zoom and video tours. Realtors have also worked to improve the safety of in-person showings, protecting their clients by adhering to a strict schedule of showings that limits social contact. They are also implementing new safety practices like wearing gloves and masks, disinfecting between showings, etc.  Online capabilities like electronic notarizing and document signing also help limit contact and ensure safety.  If you’re in a position to buy and decide to strike while the iron is hot, start by browsing online and becoming familiar with the local market.  Features like The Guide’s virtual open houses will help you with this process.   Charleston area new home builders are always available to answer any questions via chat features on their website, email or phone. Stay safe and happy new home hunting!

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