Economic analysts have already confirmed that the COVID-19 Pandemic is the cause of the economic free-fall experienced since March 2020. People have lost millions of jobs and businesses, defaulted loans, and it is almost getting into a financial crisis. The real estate sector has been affected since people do not have money to buy homes while many sellers have withdrawn the sale of their properties to curb the spread of coronavirus.
However, reports indicate that the confidence of buyers has remained high even as the crisis gets deeper. This can be attributed to a number of reasons.
Record Low Interest Rates
Financiers such as mortgage and loan providers have significantly dropped their interest rates to entice more home buyers to take the package. Notably, most financial institutions have made the process of applying for loans very easy. As a result, many homebuyers have remained confident.
According to studies, over 65% of people claimed that this is the best time to buy a home for those who can afford it. Only 10% thought of it as a bad time. On the other hand, sellers are not content in selling their homes at this time. Many of them think that it is a bad time.
Record Low Prices of Homes
Another thing that has increased the confidence of buyers is the low prices of homes that have come with the pandemic. According to realtors, sellers are forced to lower the prices since the demand is very low. For many buyers, this is the best time to get your dream home at a record low price.
Health experts have said that the coming days might see a higher spread of the virus and this means that the economy will deepen even more. But as this happens and the prices of homes get lower, buyers have something to smile about. By using a real estate consultant, it is easy to get an excellent home at a price that is almost 3% lower. To get one, check this useful reference.
Government Input
Even as things get worse, governments from different countries are making plans to save sensitive sectors from collapse. Real estate is crucial in the USA, UK, Canada, Dubai, and many other regions around the world. Hence, governments are not just going to sit back and wait for the sector to collapse. They will either pump in money or make regulations that will bring it back into its feet over the next 12 months.
This is a big hope for both consumers and sellers of properties. Studies conducted showed that both of these parties are optimistic that their government will bail the sector out. They want the government to get to work on this immediately to avoid any further fall.
Final Word
Real estate consumers remain hopeful about the real-estate industry even as things continue to get worse. From the above insights, it is evident that there are all signs to believe this. The buying and selling of homes are dependent on the macro economy, but there is a lot that can be done to save it.
