During the stay at home orders at the peak of the pandemic, although virtual tours were being offered, one thing became abundantly clear. Very few people are willing to buy a home or property without seeing it in person. So, the activity in the real estate market, although possible, was essentially non-existent. However, real estate news and buzz has been very active due to the historic mortgage rate drops.
With the lowest mortgage rates the country has ever seen, homeowners are all after refinancing options and those in the market for a new home are itching for a chance to look at some properties. Many people who weren’t really considering a home are now wondering if they can afford it now.
With the country slowly opening back up as individuals and businesses are setting their lives and operations with the CDC guidelines as a road map for necessary precautions. Realtors and real estate agents are also able to start showing homes and properties again (www.aminvali.com).
This is good news for the real estate market and those looking to buy now and relatively bad news for those planning to buy in the future. Why do we think there’s relatively bad news? Because the sudden surge in activity caused by the months long pause and the newly super low mortgage rates will raise property prices. Coupled with the slow-down in constructions due to the coronavirus you get the natural laws of supply and demand causing an even further increase in future property prices. The reason this is only relatively bad news, is because we don’t know when the rates will go back up (it could be a few months or possibly longer) and we also don’t know when the eventual uptick in property prices will level out. What we do know is that since right now buyers are actively looking, right now is the best time to buy since actively looking buyers will lead to purchases and purchases (while construction is slowed or stopped) will lead to price increases.
This phenomenon is especially true to California, where the real estate market almost never sees a dip in property prices. Are you still wondering if you should be actively looking? Are you wondering why your friend suggested you should at least lock-in a low mortgage rate while you can? Or why your family members are saying “what’s the harm in looking?” Are you beginning to think that buying a home in California is not as far fetched as you once thought?
Very few times in recent history has the real estate market been in such a position. Take advantage and buy the home of your dreams before it’s too late or we can all come back down to earth and you can do the more practical thing and talk to someone about your options and ask some questions (www.aminvali.com).
Civil Engineer, MBA, Real Estate Agent, Multi-Unit Construction Project Manager in California,
USA Phone : +1(310)925-3878
Cell phone: +1 (949)220-1000
Web : www.aminvali.com
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Realtor in Zutila Inc.