Should I Buy a House Now Or Wait?

It is difficult to think of a single area of life that the coronavirus pandemic has not impacted. Work, education, socialization, finances… Things that we took for granted - from going to school to catching the game to eating at our favorite restaurant - were suddenly not possible. And questions we thought were answered were suddenly thrown into uncertainty. This is particularly true if you were planning on or thinking about making your dream of homeownership a reality. Is now the time to buy a house, or wait? 

It depends. We know this is the single most frustrating answer in the world! But that doesn’t mean it’s not true. The best time to buy a home really does depend on several factors, many of which are individual to you and your situation. COVID has, of course, made the equation much more complicated, so let’s dig in and see if we can’t find some answers.

Buy a House Now Or Wait?

When states first began shutting down, all but essential workers were sent home. Real estate is considered essential in many areas of the country, and home buying and selling was allowed to continue - albeit in a socially-distanced, digitally-supported way. 

As states began to reopen, many professionals went back to work. While we have to remain agile in the event of further closures and spikes, the industry is moving ahead. And it’s hot. In many areas, there are more buyers than available homes. It is certainly a seller’s market, but it is possible to buy. It is more important than ever, however, that you are well-prepared, both financially and mentally. 

Here are a few keys to keep in mind if you’re wondering if it’s the best time to buy a home.

Know the Local Market

Even in active markets, the percentage of homes that are under contract and closing is lower than pre-pandemic levels. One reason is the unstable job market. What’s your local market like? If you are looking at higher price points, now is a fantastic time to buy because there is more room to negotiate. If you’re looking in mid-range or lower-range markets, you will likely face a lot of competition. 

Get Focused

One benefit of the changes wrought by coronavirus is that the house hunting and buying process is much more streamlined. This is a side effect of social distancing and prohibitions against in-person viewings and appointments. However, it also serves to save you untold time. For example, previously, you may have visited a dozen homes - most of which sort of met your criteria. Now, you and your real estate agent can be laser-focused on what you want and need. 

Finances Always Matter

No matter when you buy a home, finances are always an integral part of the equation. In today’s world, though, it is imperative that you are well-positioned to buy. While interest rates are at a low (about 3%), many lenders are increasing their credit score requirements and requiring a full 20% down payment. 

There is also a great deal of uncertainty in the job market, with unemployment at 14.7% (May 2020), the highest rate since the Great Depression. Is now the best time to buy a house? It is likely not if:

• Your current company/job/industry is not stable
• Your income has been negatively impacted by COVID
• You do not have much in liquid savings
• You do not have sufficient savings for a down payment and closing costs
• You do not have an emergency fund

Pandemic or not, you need to have these fundamentals in place before you buy a home.

Traditionally, when you asked when is the best time to buy a house, you’d be thinking about the time of the year. (Did you know the day after Christmas is the single best day to buy? Now you do!) There are other adages too: like don’t buy in spring or early summer if you want the best deal, don’t buy on a Thursday…. Some of these have grains of truth, but the reality is that if you are well-positioned, you don’t need to wait until Friday to buy, and you can enjoy December 26 with the family. A good real estate agent will guide you through and make sure you take the right steps at the right time.

Today, the best time to buy really means: should I wait out coronavirus?

We don’t know when the pandemic will end. We do know that if your finances are in order, your credit score is strong, and you have stable income, then there’s no time like the present to buy. If you’re ready, start with Homes & Land; we’re here to help you access the information, listings, and professionals you need.