One of the hardest hit sectors of the economy during the COVID-19 pandemic has been housing. With the substantial number of job losses suffered from coast to coast (and worldwide), millions of people are having trouble keeping up with their mortgage payments.
While some homeowners are working with their lenders on payment plans, others have opted to put their homes on the market and move on. But, while the spring and summer are traditionally a good time for sellers to sell, and for buyers to choose from a wide variety of options, the Coronavirus has forced a number of differences in the home buying and selling processes.
In addition, some experts feel that the recovery of the housing market could be vastly different from that of the 2008 economic recession. For instance, according to Realtor.com, housing could see a rebound during the summer, but may experience another downturn later in the year.
One of the plusses for potential purchasers is that the 30-year mortgage rate is hovering in the neighborhood of just 3.5%. But even though mortgage rates are at a historic low, qualifying for a home loan could be met with some very tight credit restrictions.
In addition, with a growing number of current borrowers filing forbearance requests (i.e., the postponement of payments in lieu of forcing a property into foreclosure), most lenders are being extra cautious about bringing new borrowers on board.
If you’re considering the purchase of a new home, it is important that you first have a plan in place so that you are able to narrow down your budget (based on your borrowing ability), as well as other key factors like square footage and location.
We can assist you with finding your next dream home – and can also create a marketing plan to help you determine an appropriate listing price if you have a current property you plan to sell. Just give us a call at (301) 502-6190 or contact us using our website contact form and we’ll set up a time to talk.