Coronavirus has turned every aspect of life upside down for most people. We’ve gone from hectic, fast-paced days to an almost complete standstill and then back to hectic. And while lockdowns did cause the real estate industry to slow for a while, measures are now easing and many people have reassessed their life plans and priorities during this time.
Are buyers more cautious?
Coronavirus has caused a lot of uncertainty, with many people facing redundancy, reduced pay, or other dramatic changes to their lifestyle. However, it’s also had a significant effect on people’s attitudes towards where they are living.
Being forced to stay at home for an extended period of time has made people reconsider the priorities they have in their home. Many people that currently live in compact apartments, or city central locations, are now considering more space, some might actually like a garden or green space around their house. Renters are also looking for their own space, a space that they can decorate and improve as they want.
There are also the financial considerations that have been brought up during the coronavirus pandemic. While there is a lot of economic uncertainty, a large number of people have managed to significantly cut back on their living costs — fewer coffees, meals out, and luxuries that would usually add up.
A lot of people have been able to save up some money while confined to their homes, and they’re looking to invest this money into buying their first home. It’s also often the case that rent payments are higher than monthly mortgage payments.
On top of this, many offices aren’t going to be reopening in the same way that they were — many businesses have found that they can operate just as well, if not more efficiently, with their staff working from home. While many workers have set up make-shift, temporary home offices, as we come out of lockdown people will be looking to buy houses that will be better designed to have a workspace.
Is post-lockdown a good time to buy a house?
Over the past couple of months the housing market has slowed, buyers have been cautious, and fewer sellers added their house on the market.
Post-lockdown could be a good time to think about buying a house because prices are likely to go down, at least a little. Many predicted that it would cause a significant drop in house prices. And while there have been price decreases in some areas, in other areas it has just stalled the acceleration of house prices for now.
Experts are saying that it could take until 2021 before Canada’s house prices start to increase again, and the housing market won’t fully recover until 2022 — so if you’re a first-time buyer now might be a good time to get a better deal.
And as normal life begins to pick up again, and furloughed employees go back to work, homeowners who have reassessed their living requirements are going to start listing their properties for sale.
What to consider when buying a home after coronavirus
The longer-term effects of the coronavirus pandemic are still unfolding and there is a certain amount of economic uncertainty. With that in mind, it’s important if you’re thinking of buying a house that you get the best rates for your mortgage. Use an online mortgage broker such as Breezeful to find the most competitive rates.
At the same time, coronavirus has had a big impact on how the real estate industry is operating. It has become more flexible in light of lockdown restrictions, and many realtors are moving a large part of their operations online. They are now interacting with buyers and sellers virtually — showing houses and signing papers without the need to meet in person. This can provide buyers with a lot more flexibility in viewing a house initially, and as restrictions ease, it means they can still do a virtual viewing first to ensure they want to visit it.
If you are seriously thinking about buying a house then it’s important to have a long term plan for your savings. Use a money-saving app like Money Box to help you set, track, and achieve saving goals.
Coronavirus has given a lot of people time to reconsider their priorities, and for a lot of people renting this means they’re now seriously considering buying a house. Whether they’re looking for a bigger space or more freedom – this is a good time to be thinking about buying a house.