The COVID-19 pandemic has had massive economic implications around the globe, and the housing market is no exception.
If you’re thinking of buying a home after COVID-19, so we have created a guide to help you understand what to expect moving forward.
Read on to learn more about coronavirus and the housing market, and how it might affect prices and your buying power.
Home Prices and Buyer Priorities
With many economies at a standstill, home sellers are seeing a decrease in interested buyers. When the buyer pool is smaller, it often forces homeowners to decide between lowering their asking price or putting their home selling plans on hold. In May of 2020, home price growth in the UK fell from 3.7% to 1.8%.
Lower home prices can be advantageous to buyers, however. If you’re thinking of buying and you’re currently financially stable, now could be a good time to buy a new home at a great price.
As for location, many buyers’ priorities are shifting from city life to the countryside. Current buyers are considering larger homes in more remote areas, with plenty of space to set up an office to work from home. Typically, homes away from the cities are already lower in asking price, which means this may be a terrific opportunity for some buyers.
Interest Rates are Low
The Bank of England has kept mortgage interest rates low since 2008, and they slashed rates even lower due to the pandemic. While many homeowners are considering remortgaging to take advantage of this, buyers also have a good chance to get a terrific rate.
Lower rates typically mean the number of buyers increases, however, COVID-19 is having an unusual effect. Many people want to wait things out to decide if they feel stable and comfortable with making such a massive purchase.
With our Mortgage Advisor Northampton, we see these rate cuts as an opportunity for buyers. If you’re in a good position to buy a home, it’s best to try and find one while rates are at such historic lows.
Coronavirus and Buying a House: Is Now the Time?
The answer as to whether or not it’s a good time to buy a home is really a matter of personal preference. There’s no guarantee that rates nor prices will continue to stay low into the future.
If you’re in a position to buy and are ready to make a move, now is the time to consider buying. If you want new construction, the Ministry of Housing, Communities and Local Government has given builders some assistance to keep construction moving forward.
Just like the pandemic, there are no guarantees about the future of the economy or the housing market. It’s always best to consult with a professional who can help you decide if buying right now is the best move for you.
To Buy or Not to Buy
Buying a home is a major decision, regardless of whether or not the world is in the midst of a crisis. Consider the current climate and use this simple guide from to help you determine if it’s right for you.