Property prices continue to see steep drops this year. Still, the buyer rate remains relatively low because, as much as the sellers are affected by the economic uncertainty brought on by the pandemic, so are the great majority of prospective buyers who would otherwise be more active on the market. If you’re looking to buy a property this year, here are some considerations to make when picking your place.
Find a space with good bidding.
Even though there is a lot of unrest with the drastic shift in economy and society, you’ll still want to find a piece of real estate that is seeing a healthy amount of bidding. There are still so many people on the market looking for homes, especially with job changes caused by the pandemic making people relocate more. Despite the pandemic, a space with no opposing bids might not be the best choice to jump on immediately.
Take in your options, and balance out the price you’re willing to pay against other bidders as well as the risk you are ready to take. You can buy land for sale that may have you up against some competition, but at least you’re assured that you’ll be getting good development and no hidden surprises that cost more down the line. No other bidders during a time when inventory has crashed is a big red flag.
Check the adjustments on mortgage rates.
Mortgage rates slightly vary here and there, but mortgage rates are expected to stay low throughout the year. That said, you’ll still want to see if you can make use of the short term or otherwise if you’re financing. Mortgage lenders continue to change their rates and rules because of COVID-19, so get those numbers settled early on and see the best rates depending on how many years you’re planning to pay it off. Although stats show they have started to rise a little, they are still on the distinctly low end, even quite near their all-time low number.
Scope the location for its employment statistics.
Though this is a general rule anyway to see how viable a location is, it’s even more important to know the job trends in the area where you’re planning to get some real estate now. Think of major city centres that call for more professionals as the service industry remains one of the pillars keeping society intact throughout all the quarantines and social distancing restrictions. As these focal zones draw attention from workers relocating, you’ll want to make sure you don’t get hampered by that. It will not only tighten the pool even more, but it will likely drive up home prices significantly. You’ll also want to keep in mind that as most industries adopt a work-from-home setup, that should be a significant consideration to factor in picking the best location and property for you.
2020 is already in its latter half, and yet the world continues to feel its impact, and it’s looking like major change is already expected moving forward to 2021. With these in mind, you can have more insight to carry with you when picking what piece of real estate to invest in.