From virtual home tours to record-low interest rates, it’s no secret that the COVID-19 pandemic has significantly altered the homebuying market. Now, with a vaccine in distribution and many of us patiently waiting for a return to normalcy, plenty of potential buyers are gearing up to finally make that big-ticket purchase. If you’ll be home shopping after the pandemic, keep these major market changes in mind to prepare, shop with purpose and secure your dream home.
Higher Prices
Amid record-low interest rates and bolstered demand, home prices across the nation have skyrocketed over the past year. Average U.S. home prices have increased 9.1% since January 2020 and are projected to rise another 10.1% in the coming year (Zillow, 2021). To stay on top of the increases, you’ll want to research prices in your local market, refine your list of “wants” versus “needs”, explore neighborhoods that may not have been your first choice and possibly consider downsizing. Afterall, the perfect home will always be one that’s within the budget.
Virtual Buying is Here to Stay
Even when in-person events return, virtual homebuying technology is not going anywhere. Whereas virtual home selling tools were formerly used on a case-by-case basis, the technology is now much more commonplace. So, while some buyers may make a beeline for in-person open houses as soon as possible, those who prefer a virtual transaction will still be able to purchase from their couch. Determine your level of comfort and your preferences, then pursue your dream home accordingly.
Pre-Qualification is More Important Than Ever
Record-low interest rates and squeezed supply ensure that time is of the essence. With current and projected demand levels, some homes are under contract within days, if not hours. Walking in with a pre-qualification letter can speed the process up significantly, and ensure you get into your dream home before someone else with a similar offer. Plus, the letter clues you into just how much home you can afford, and lets sellers know you have been vetted financially. To get pre-qualified, make an appointment with a loan originator, either online or in person. The mortgage professional will then run a credit check and tell you just how much you are pre-qualified for to seriously streamline shopping.
New Emphasis on Community
As local stores and restaurants return to full capacity, neighborhoods will bustle with new life. Home shopping will again be about more than just the property itself. When much of our work, school, and socialization is no longer limited to the internet, you’ll be buying into a community as well as a home. Ensure each potential new neighborhood fits your needs, preferences and lifestyle.
Safety Will Remain a Priority
Even post-pandemic, we’ll likely see a lasting emphasis on health and wellness. Experts predict that mask-wearing will remain the norm, perhaps into 2022, and, of course, hand washing and other measures of cleanliness will be top of mind (The Washington Post, 2021). Before shopping, determine your level of comfort with in-person gatherings like open houses, home tours and meetings with your agent. You should feel comfortable and confident while finding your dream home, and safety always comes first.
Home Shopping Post-COVID
The global COVID-19 pandemic has rocked much of our lives, and the homebuying industry is no exception. If you’re planning to become a homeowner post-COVID-19, you’ll want to familiarize yourself with the ins and outs of this new market. Understanding the changes and putting in the prep work can help you secure your dream home post-pandemic.
Published on March 29, 2021
