Covid has impacted our economy in an unprecedented way. Unemployment levels are higher than ever, interest rates are at all time lows… Yet, consumers are still buying.
With 6 years of experience in the real estate market, I have been staying on top of the news regarding new home sales, new construction, number of those taking the opportunity to refinance, those moving from city living to suburban living, etc…
With so much chatter, I am trying to get a grasp of whats up and whats down in these again “unprecedented” times.
There are a few perspectives that stand out to me. After giving what they are, id be interested in knowing which you think is most accurate and why.
- There are tons of people looking to buy now being that interest rates are low. With interest being so low, people are wanting to lock in the good rate (even if they dont have sufficient finds to live comfortably). Some say that in years to come, those making this move now will find they may not be able to keep up with the mortgage overtime and this is may cause another real estate bubble.
- On the other end, there are those who say, as mentioned above, buy now because prices are dropping and its the best time to lock in good rates.
- Investors are now selling for profits off of home they bought 10+ years ago for 10x what they paid to buy after the 2008 mortgage crisis. Does this mean we are now at the peak and that we will soon see a shift to it becoming a buyers market?
With Covid-19 coming back at us with a second wave, potentially making the United States close down again, have we seen the worst of it yet?
How long will it take for a vaccine? With how much more technologically advanced we are now than before, can we beat the say… 2 years to find a vaccine?
How many people do we have to lose before it all gets better?
What will happen to the stock market? Are we buying in too soon, with wishful thoughts that this time it will grow our net worth?
Let me know what your opinion on this is. SOOOOO curious to know!