It takes a lot of courage to move forward with a life-changing financial decision in the midst of the pandemic.
But many young consumers are doing just that. They are forging ahead with their very first home purchase in one of the most uncertain economic climates we’ve ever experienced.
In fact, Client Associate Scott Weigel, whom many of you know from our Boca Raton office, and his fiancée Melanie will soon be joining the ranks of first-time homebuyers. They’re closing on their very first home this coming week. (Congratulations, Scott and Melanie!)
Despite the pandemic, the real estate market is surprisingly active and home sales have rebounded to pre-pandemic levels. Real estate professionals have quickly adapted to the reality of coronavirus, and have come up with new protocols for showing, inspecting and closing real estate properties while respecting social distancing.
“For people fortunate enough to have strong finances and job security, 2020 could be a smart time to buy a home,” writes Michelle Clardie for Interest.com.
Wall Street Journal reporter Deborah Acosta spoke with several under 35 homebuyers to understand what led them to buy now, despite the significant health and financial uncertainties they face.
Four main reasons stood out, said the new homebuyers.
They wanted to take advantage of record-low mortgage rates, obtain more physical space as a result of the lockdown, seize the competitive advantage by moving forward while the real estate market was relatively quiet, and capture the freedom to telecommute and move further away from their workplaces.
Those are all very solid reasons to buy. If you’re in the market for your first home (or even a follow-up home), remember to review your credit before shopping for a mortgage, get mortgage pre-approval so you know how much you can spend, and fine tune your budget so you understand the potential cost of home ownership. Beyond paying your mortgage, you’ll need to spring for real estate taxes, insurance, homeowner association or condo fees, repairs and utilities. Don’t bite off more house than you can afford, and if your job – or your partner’s – is shaky, you might be better sitting it out for a while.
Happy hunting as you look for your Home Sweet Home!