Are you thinking about buying a new home this spring? Many home buyers held off on moving and home shopping during the darker days of the Covid-19 pandemic. If you were one of these or if you're considering this for the first time, you may wonder if now is the right time to pull the trigger. To help you decide, here are a few of the pros and cons of buying in the spring of 2021.
The Pros of Buying a Home Now
Certainly, one of the biggest positives of buying a new house now is that a homeowner or renter who is tired of the same four walls throughout the pandemic gets a change of scenery. With most Americans spending massive amounts of time at home, minor dissatisfaction with that house may have become a serious annoyance. And with a strange year still ahead, a fresh start may protect your mental or emotional health.
The financial good news is that interest rates are still very low. Those who are in a good place to qualify can save a lot of money by doing so before the economy improves and more buyers enter the market to serve as competition for those low-interest loans.
The Cons of Buying a Home Now
Of course, you still face challenges this spring. As things reopen and people take up dormant projects, more buyers are entering the market. Housing inventory is still very low — because fewer people are selling — so competition is stiffer than normal and may continue so for the foreseeable future. You must counteract this by making yourself an appealing buyer/borrower and being as ready as possible.
That rise in competition for homes for sale also means that prices are higher than they were before the pandemic. Higher prices are, unfortunately, coupling with stricter lender rules (due to the economic slump) to make it even more important that serious buyers work to put themselves in the best position possible as early as possible.
Finally, expect the actual buying process to be unusual this spring. You may do more teleconference and online activities, including visits and open houses. And your real estate agent may operate through a variety of virtual communications means, so make yourself savvy about the virtual home shopping process and how you can get the most out of it.
Where to Learn More
The decision to buy a home now or to wait until later is a deeply personal one. While you may encounter challenges like higher prices and more competition, a smart buyer can still find a home to start over after a difficult year. Learn more about home shopping in 2021 by meeting with an experienced real estate agent in your target area today.