Despite the ongoing pandemic, experts expect more people to buy houses this year. It is true that many people are having a hard time catching up financially. But because of the threat of the covid-19 crisis, many more want to secure their own place where they can have a better piece of mind.
It is true that today’s largest general cohort of home buyers are the millennials. But due to the pandemic, more consumers from other generations also plan on buying a house. This is since more people are realizing just how important real estate is especially during these unprecedented times.
Why There Are Lots of Home Buyers in the Market
The number one reason why buyers flock the market is to secure a house that will make them feel safe. With the sheltering in place and social distancing being a significant priority during the crisis, it only makes sense why they want a new place.
Buyers want a separate home instead of sharing the same building with other tenants. This gives them better peace of mind knowing they won’t have to mingle with many people every time they go out and go home. They want more privacy and space where they can live their own lifestyle.
Home buyers want houses with more space. As learning and working conditions continue to change, their spatial needs also evolve. They want more space for their learners and a private space for their home office.
Another reason for buying houses is to have more outdoor living space. Since going out puts one at risk for exposure, they would rather have a bigger yard where they can exercise, unwind and have fun with nature. More homeowners are also creating a separate building in their yard to have a more private office at home.
Why It Will Be Tougher to Buy a House This Year
There are lots of reasons why buying houses will be more difficult this year, such as the following.
- Lenders Will Be Stricter
Mortgage companies or lenders have a good reason for setting stricter rules for borrowers. For one, they want to make sure they get paid no matter what. Since many people lost their jobs mid-pandemic, they want their borrowers to have a stable source of income to ensure monthly payments.
Lenders want borrowers to have higher credit scores and good credit history. This is since it means the borrower has good paying habits. By doing so, lenders can reduce their risk tolerance.
- Houses Listed for Sale Are at an All-Time Low
Many homeowners are having second thoughts about listing their homes in the market. The recession led to a boost in home prices. This urges many to increase their home value first.
Even sellers in rural areas are delaying their plans to sell their homes. Those who initially plan to move to the city realized they are safer in their current location. As more remote work opportunities are made available, this gave them more reasons to stay.
- You Need to Make More Compromises
The lack of houses listed for sale is just one reason why buyers need to compromise when buying. Last year, many had to compromise when it comes to the size of the house they are buying. They either bought houses with one less bedroom or a smaller yard.
Others had to go virtual instead of in-person house visits. This is since houses sold fast. Many would buy real estate even if they haven’t seen the place in real life.
Buyers can also get rejected even if they make sellers an offer. One should not feel discouraged if they can’t find a buyer that will accept their offer. Many use this as an excuse to buy the first house their offers will get accepted even if they don’t like the house that much.
There are also times when buyers will pay for a home that requires much-fixing. Millennials, for instance, are on a tight budget. They would rather buy fixer-uppers at an affordable rate even it meant more work for them.
Before you buy, it is worth listing your non-negotiables. This will enable you to avoid deal-breakers and remorse triggers. Having an open mind is different from compromising a long term investment that you will only regret in the future.
Knowing what to expect when buying a house is a must. You can better prepare yourself and set the right expectations. You even have time to think things through and see if a home purchase is viable or not. Note that even without a pandemic, home-buying is never easy. Since you’re making a long-term investment, it pays that you do your research before you draw your final decision.
