I just heard on the news that interest rates have dropped to 2.75% for a 30-year fixed home loan. This is the lowest they have been in decades, if not ever and buyers are constantly wondering if now is the right time to buy even among the virus outbreak. However, I want to ensure my clients that we are doing everything possible to keep you, your family, and all parties involved as healthy and safe as possible. So with rates so low should you really be buying a house right now?
I’m going to say emphatically yes! Real estate is still essential and there are homes on the market that need to get sold and one of the best things is buyers don’t have a lot of competition right now. This means that they won’t need to compete with multiple offers, and escalation clauses, or add money to their offer. Any offer is a welcome treat for home sellers right now. This doesn’t mean that you can lowball homeowners, but it does mean that you’re likely not to overpay for any house. It’s also a great time to consider negotiating.
Buyers now have the upper hand and even though it’s not necessarily a buyers market due to how many homes are on the market, it is a buyers market in the fact that there are just not that many buyers or sellers out there. Sellers who may have started the listing process before the outbreak or the stay-at-home order are desperate to sell and may be willing to drop their price.
Homebuyers also have more buying power because interest rates are so low they can actually afford more than they could just a year ago when rates were anywhere from 3.5% to 4.25%. A year ago, the same home may have been out of their price range but because of the interest rate, they now can afford the property.
This is great news for any buyers that have been holding off buying or perhaps they found a home they loved but because of the interest rate, they were unable to make the payment or afford that monthly payment. But now, things have changed. It really would benefit buyers greatly to go back through the homes that they have looked at in the past or bump up the search parameters to a higher price considering that you may be able to offer a lower price, one that is within your price range.
I want you to feel safe and comfortable and trust me with your real estate purchase but I will encourage you that if you been considering buying, now is actually a great time. We have all precautions in place with lenders, escrow, title, home inspectors, and appraisers and we are doing just about everything virtually or electronically. If you’re unsure about the process right now give me a call. I’d love to discuss the logistics of buying a home right now during the COVID outbreak and let’s take a look at homes. I specialize in Lewiston real estate but would be happy to help you buy or sell throughout the area.