Buying a Home in the Pandemic: Timing and Benefits

When the coronavirus pandemic hit, many people hesitated to invest in a home. However, would you buy a house during an influenza outbreak? If you wouldn't, why would you wait for a virus like coronavirus?

Crunching the Numbers: Economic Factors and Value

In times of economic downturn, properties often see a decrease in value due to reduced demand. With fewer people in the market, the opportunity to secure a better deal becomes more apparent. Additionally, as the economy recovers, property values are likely to increase. If you’re unsure about managing your finances, consider having a professional invest your money for you. This approach ensures that your capital is used wisely, potentially yielding higher returns.

Permanent Need for Housing: Location, Location, Location

Prompted by the pandemic, many people have realized that housing is a permanent need regardless of circumstances. The uncertain future makes it even more crucial to secure a stable home. As mentioned, location is key. Areas with growing economies and stable employment opportunities will likely see steady demand for housing. The adage “buy land, they ain’t making any more” rings true, as real estate remains a solid long-term investment.

The Right Time to Invest: Discounts and Dodging the Rush

Now is a prime time to buy a home, especially if you are looking for a good deal. Builders are currently handling large inventories of unsold properties, leading to lower prices. There is also a lack of cash available to them, further pushing down prices. Additionally, the demand for property has dropped, which means more flexibility in negotiating prices. Opt for homes in markets with employed professionals working from home, as these areas are often seeing brisk sales.

For instance, my house, listed in August 2018 for $650,000, sold for $615,000 within three months. Although it was a turn-key property, it still saw a modest price drop. According to Zillow, the value of my home has since risen to $670,000, reflecting the increasing demand. In my neighborhood in Portland, Oregon, I have observed properties that were listed for $750,000 to $900,000 in 2018 now selling for $1.2M to $1.5M, often in less than 45 days.

Opportunity Knocks: Negotiate, Act, and Profit

With the current shift in market dynamics, there are several opportunities for savvy homebuyers. Property prices are more negotiable now, and if you can lock in a deal before the new year, you can secure a highly favorable price. Builders may offer additional discounts if you can finalize the deal quickly. Rush to the market and secure a house that meets your needs. With houses moving rapidly in markets like Portland, it’s a great time to buy.

Moreover, there are currently loan programs available with lower interest rates and moratoriums on EMIs for a period. This means you can lock in cheaper terms and take advantage of these favorable conditions before they change again. Whether you are a first-time buyer or an investor, the current market offers unique opportunities to secure a property at an opportune moment.

Ultimately, buying a home now isn’t just about getting a cheaper property. It’s also about securing the future, making a strategic investment, and taking advantage of the current market conditions. Don’t wait for “normal” to return; leverage the current situation to your advantage.