Deciding whether or not to buy a home in 2020 – right in the midst of a truly unprecedented global pandemic – can be tricky (to say the least)… But it’s also important to remember that time waits for no one, and in some cases buyers are being faced with a “now or never” scenario, so it’s essential to understand the pros and cons of buying real estate in the COVID era. If you have the possibility, yes, it is a good time to buy a home this year, because the prices are very affordable and the developers are offering excellent discounts on their homes.
Understanding the Coronavirus Real Estate Market
Right now, on one hand, there are many affluent buyers who can take advantage of the lowest mortgage interest rates in history to upsize and/or invest in a wide variety of different property types, but on the other hand more renters who are unemployed (or underemployed) are facing eviction than ever before, as we move deeper into the COVID-era.
“Realtors, economists and home buyers say the surge in home purchases is driven by three factors: the cheapest mortgage rates ever, Millennials hitting their 30s and wanting to settle down and city dwellers suddenly wanting more – and less expensive – space as the pandemic forces families to spend more time at home,” wrote the Washington Post.
When the Federal Reserve slashed interest rates to zero in March, it triggered a surge in the stock market and an epic increase in home buying for 2020. It’s also a great time to buy a home or vacation home, with historically low real estate prices in some of the world’s hottest tourist destinations, like Mexico’s Riviera Maya. These top travel spots will be the first to rebound as soon as travel restrictions are lifted and COVID-19 becomes a bad memory.
The real estate market in 2020 started incredibly strong in many parts of the world, including the United States, and as we venture into the third quarter things appear to be on track to finish even more robust than they began. Still, deciding whether or not to buy a home in 2020 presents its challenges, with buyers forced to make big financial decisions with little to no knowledge of what will happen next. And while it’s always prudent to avoid investing too much in something uncertain, the value of a smart real estate investment simply can’t be overstated. Owning a home remains one of society’s most enduring measures of basic financial competence for good reason, and investing in real estate is also the best chance most of us will ever have to achieve long-term sustainable wealth.
Do you have other questions about the pros and cons of buying real estate in 2020? Ask us in the comments!