In today’s economy, many homeowners and investors have tightened their finances and spending, However, this can actually be one of the best times to purchase a new home, curiously enough due to the chaos of COVID-19. A wide range of market and social factors are creating favorable conditions that can help homeowners save a great deal of money in the future by purchasing a new home during this difficult time.
Growing Home Equity
Homeowners have gained an average of almost $10,000 in home equity in the past year, averaging a 6.6% year-over-year increase in overall home equity. Why not put this home equity to work in purchasing a new home? By selling their existing homes, homeowners can move into a new home at a lower overall financial cost.
Very Low Interest Rates
Home mortgage rates are experiencing record lows, with October 15 showing an all-time low of 2.81% on a 30-year mortgage. This rate approaches that of inflation, while home values continue to rise. This allows savvy homeowners to invest in a new home that will increase in value but not in cost at any time of the year.
Remote Learning Lowers Student Disruption
Schools facing two-week quarantines for cohorts and medically-fragile students have turned to remote learning for solutions, with 5% of students enrolled in 100% remote learning and others facing a lower on-campus schedule. Instead of moving only during the summertime, it’s easier to move at the right time for your family while work and school schedules are flexible.
Remote Work Improves Location Options
Due to COVID-19, it’s estimated that 83% of office workers want to work from home at least part-time and 55% of employers expect employees to continue working from home after the crisis has passed. This creates a great opportunity to move to a beautiful location now and continue working remotely later. Why wait for retirement when it makes monetary sense now?
In Review
By taking these factors into consideration, many savvy homeowners are getting into a better home without a lot of extra expense or worry about the new location, allowing them to get into the home that they really want. Make sure to consider all of the available factors and then make the move to a really amazing home. However, it’s best to make this move with an experienced real estate professional that can help you make a smart move instead of simply a fast one.