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Buying a home during a pandemic is possible

A couple with their new home

It’s been two years since the COVID-19 threat first hit and much of the pandemic-related fears have been put to rest, thanks to the more systematized vaccination rollout and the slow but steady adjustment of various sectors to the new normal. If your home-buying plans have previously been sidelined by these fears, then it’s about time you put those fears to rest and buy that dream home you’ve been saving up for. However, do expect to tread on shaky ground, especially with some anticipated changes in the economic climate.

The move to all-digital

The real estate industry was actually one of the first to get back on its feet after the movers and shakers in the business made the swift adjustment to maximize digital technology in all the steps to buying or selling a house. And, as the states slowly reopened their respective economies, many agents turned the real estate transaction into a hybrid setup. The processes for home buying or selling still held on to the all-digital concept but with the addition of opportunities for bringing back some person-to-person interactions like house viewings – this time, ensuring adherence to social distancing and health protocols.

Foreseen corrections

Median home prices shot up to stratospheric levels during the onset of the pandemic, fueled by rock-bottom interest rates and the prevailing scarcity in the housing inventory. People were also moving away from large urban metropolises like New York and Los Angeles to settle in rising urban centers like Atlanta where the cost of living is lower and the homes are more spacious.

But with the economy getting back on its feet and people getting used to the new normal, a more tempered housing market is anticipated by experts and observers. The balance between buyers and sellers is seen to even out as home prices slowly return to pre-pandemic levels. Then again, another factor to watch is the Feds’ expected move to raise interest rates soon, 

Mortgage rates at record lows…for now

Mortgage rates reached all-time lows in 2020 and 2021 and continue to do so in this first quarter. However, all indications point to the Feds hiking interest rates starting March, with many financial institutions speculating a hefty increase by as much as 50 basis points

The anticipated interest rate hike is also expected to impact mortgage rates, with Fannie Mae seeing 30-year fixed mortgage rates reaching 3.3% from last year’s 3.0%

If you plan to get a mortgage to finance the purchase of your new home, it’s best to do so now while the current interest rate still stands between 0% and 0.25%. 

Strategic locations

A good move when choosing a new home to buy while the pandemic rages on is to find one located within the periphery of a good school district. This strategy will work to your advantage on two accounts. First, if you have school-age children or plan to raise a family, being near a reputable school district ensures quality education for your kids. Second, even if you don’t have children, having a good school district near your new home assures that its value won’t drastically decline no matter the market climate. 

Minimize your risks as you enter the real estate market by seeking the guidance of reliable agents. In Atlanta, Georgia, The Muller Sales Group is the real estate team that can help you to overcome hurdles brought about by the pandemic and get you your dream home. Contact us at 678.568.9895 or email robm(at)themullersalesgroup(dotted)comto begin your home-buying journey.