Looking to invest in Corona housing market?, by Jenny Gonzalez.

Looking to invest in Corona Housing Market? Here are a few things you should know about this market

By Jenny Gonzalez

Getting yourself a home is one of the greatest and biggest financial moves in a person’s life. In 2021 the value of homes were recorded to be $100,000 higher compared to 2019 to 2020 in the U.S As most American search for larger economic friendly homes and remote work flexibility it means that most American are no longer bound to economic an location time zone.

Before getting a house it is crucial to study the market of housing and most important having financial literacy about your own situation, bearing in mind the employment instabilities brought by Covid 19. Covid 19 has led to many people shifting from high rental apartment to buying single family houses with a backyard. This is because many parents feel like they need to have a pool or a back yard especially those with children doing remote learning and themselves as parent working permanently from home.

BEAR THIS IN MIND.

Due to covid 19 pandemic realtors set out limited time for show of houses and property and at the same time keep up with the public health regulations. Prospective buyers are hence required to have an approval letter stating how much they are able to borrow in order to purchase a home.

Currently the home tours are private and expedient which means that unlike initially where by people would meander around open houses with magnifying glass, research is done heavily online and show house time has been reduced to about 15 minutes or lesser.

WHAT YOU NEED TO KNOW.

The housing market is relatively stable. The prices of houses have remained more or less the same as they were even before the onset of Covid 19.Howerer according to Alison Cennname the prices of homes are expected to go higher from 13.6% to 16%. This is because demand will exceed supply and will be one of the factors leading to high prices.

INTEREST RATES ARE LOW.

Recently borrowing has become more manageable due to lower payments per month. The lower the interest rate the lower the amount of payment monthly. This interest plan has led to many first time home buyers ask about lock rates for better deals in the long term. The low interest serves as great incentives for the buyers but is important to have full details of your financial picture before making decisions based on interest rates alone. Issues such as certainties of your job even after the Covid 19 crisis and the amount of debt loan are among the factors that are supposed to be put in place with regard to interest rates.

SUPPLY CHAIN ISSUES.

Keeping an eye on supply chain will help track the housing market. Home prices could go down if supply exceeds home demand. This has not been the case for the longest time due to construction material shortages and delays. Home prices will go down if the construction of homes is made a smoother process.

KNOW HOW MUCH HOME ONE CAN AFFORD.

Among the most important factors to consider before buying a home is its cost. Most people are discouraged from buying what they cannot comfortably pay for. Prospective home owners should spend nothing more than 30% of monthly gross salary. It is note worth considering that most houses are more expensive than their price listing and potential buyers are supposed to have that in mind before bidding for homes. Buyers should know their spending limit and thus stick to that to avoid financial instabilities and the uncertainties of the crisis.

GET READY FOR MULTIPLE CHECKS.

As a potential home buyer and or real estate investor, you need to get prepared to a number of credit checks. Also following the economic crisis most lenders ask for a 20% down payment or even more money. More to those lenders need to keep track long term employment which will serve as evidence that the future income streams are unlikely to be interrupted by future crisis if there are any.

WHAT DO PROSPECTIVE TENANT AND FUTURE OWNERS WANT IN THEIR HOMES.

According to J.P Morgan “The right investment is always better than a quick investment. “Due to Covid 19 among the most crucial factor s in buying a home is office space. Most people prefer to work remotely and getting beck to office might take longer. This is because productivity is still high even from home. Potential buyer(s) therefore looks for a home where by they are able to separate their work life and family life in one space. It therefore beneficial to consider properties that have office spaces with a door that closes or multi-spaces that could serving as a nursery, large walk in closet or an office depending on the renovations. Buyer are encouraged to find houses that best suites them.