The health crisis caused by COVID-19 has had a significant impact on the property market, has modified the upward trends that it showed until the beginning of the pandemic and has varied the forecasts of the sector. The logical doubt of those who are willing to invest, given this situation, is when to buy a home.
Considerations in deciding when to buy a home
Buy right now or wait for the opportunities that may arise after the pandemic? It is necessary to take into account the particularities of the situation to answer this question.
The market in standby, and a challenging economic scenario
With the arrival of the coronavirus, the market came to a halt. Investing in real estate keeps being a safe value for investors. Nevertheless, many of them prefer to wait and see the evolution of the market. This evolution is heading towards a readjustment in prices, and a fall in demand, though not as drastic as it was in 2008.
We have to take into account that the economic situation affects directly in the real estate market, plus the uncertainty about the future, where unemployment may influence heavily. More unemployment, less family income and more reluctance of the banks to provide loans may curb the demand in the coming months.
To this should be added another essential fact: the increase in the available housing stock. By one hand, for the sale of real estate by those who need liquidity. On the other, homes of people who died in the pandemic who are going to go on the market. And thirdly, for a foreseeable increase in defaults and evictions that will make financial institutions launch properties onto the market.
Buy a home now or wait?
Higher offer and lower demand seem to encourage a price adjustment in the real estate. That would be the logical development. However, in an unprecedented crisis like the current one, theforecasts are made with the utmost caution. The evolution of the pandemic itself and the economic measures adopted by the states will have a decisive influence on the sector.
Given the circumstances, the big question for those who have sufficient liquidity or who have the possibility of accessing credit is when to buy a home. Considering the possibility of investing in the medium term, and always keeping an eye on the market, seems to be the most reasonable thing to do.
The market is now unpredictable, but good opportunities, with great discounts at the starting prices, will not wait. It's difficult to know when prices will touch the ground. Therefore, the logical thing would be to assess the possibilities of purchasing and adjust to the level of liquidity available, rather than waiting months for an opportunity.
That opportunity can appear at any time while analyzing the market in the search for a home. But it can also pass you by if you are not prepared to invest, the necessary liquidity is not available at that time or has not been previously negotiated with the bank the possibility of applying for a mortgage.
In SpainHouses, you have statistics on prices in the real estate market and its evolution. And not just that, you can also advertise your home and reach thousands of potential buyers. Moreover, you have an immense number of properties among which you'll find your dream home, for sure.