RENT OWN SELL
Newyork
RENT OWN SELL
Newyork
Shall we begin by answering the question straight? Does the question framed has a spectrum of only black and white? While we all know there is a long-range of grey area in it in the face of Covid-19.
The world was moving swiftly with all the subtleties of human achievements piled up over centuries but the pandemic had different plans in the store. The wheel came to halt regardless of different spheres of life. The real state sector remained not immune to it.
Springs not only brings colours and fragrance in the atmosphere but also boom and prosperity to the real estate business as well. It used to be the busiest term for the selling and buying of homes in New York City with a greater influx of new buyers and owners planning to upgrade their living style to move in a better home. However, 2020 brought its colors. The colors which we cannot help ourselves but cringe at.
If data remains any evidence then the picture is quite bleak. The real estate industry in NY also got effected due to Covid-19.
Data reflects that while the number of new listings of homes, both in the rental and sales markets, has fallen steeply, prices remain largely stable.
The market was doing an amazing job at the start of the year up until COVID-19. At the beginning of March, the inventory of homes for sale was close to record highs throughout NYC.
As per the latest report, a 72$ drop in the new listings was noticed in the second half of March as mere 541 apartments were shown up for sales market during the same period which us 75% down over last year’s figure. Therefore, sales activity in March 2020 ended 6% below March 2019 figures.
And the market is still on a steep decline as uncertainty looms over the future of virus.
Shall we conclude that people are not buying homes? No, it’s not like that. On the contrary, people are bent on to use the situation to their advantage.
sellers who are still offering homes are the ones who need to sell for one or the other reasons. They might need the money to see off bad days and that brings them to a receiving end. You may press hard in negation and make some allowance and help yourself strike a better deal.
Another point is that there are fewer buyers in the market which means you are in a better position to buy a property you adored.
Though there is no harm in not being in the middle of property you just want to buy but technology has come to rescue to keep the ball rolling. Virtual tours through zoom, skype, FaceTime or 3d views have made it possible to have a good glimpse of the home.
As the epidemic has strongly restricted movement but is coming up with the solutions to cope up the situation. E-closing is one such option which means you might not have to sit around a table to close your deal but through the internet. You may sign your documents or may have a video chant and also can do transactions online. When e-closings aren’t possible, many lenders and title companies are opting for drive-through closings, meeting buyers in parking lots to hand off documents through windows and sign contracts in cars.
The one thing we are certain about is the current uncertainty in the market. Experts are still busy predicting the future but not sure about how long would it take the world to come to normal.
There are few sellers in the market which have become a limitation for the buyers as there are fewer available options. The chances of finding a home tailored to your esthetic are quite low.
If you’re going to finance your home purchase, then better know it that lending standards have been changing. FHA loans ask for a 580 credit score and 3.5% down payment, but there are extraordinary measures for extraordinary time. Many major lenders such as Chase now require a 700 credit score and 20% down for any new home loan. Better.com has also spiked its minimum credit score to 680 due to heightened risk.
Not only lenders are asking for more down payment they are interested to know that you have a cash reserve. They are making it a binding to have a three months reserve of payments.
As there is a risk in the air, lenders are tightening the lid through different ideas. They are taking multiple check-ups on your job status as more and more people are losing their jobs gradually.
Which is one factor that is keeping buyers at bay? Even if you find one, many people are not yet comfortable to peek into a home through the digital window.
Is It Best Time to Buy a Home in New York During the Pandemic? Experts are split on these arguments. There is still a dark showdown about the termination of virus and how long will it take? Which invites hosts of questions about the future of the real estate.
Prices are stable as of now and people are only having their guesswork.
Summary:
So, if you aim to use the situation to your benefit, then bear in mind that technology will have a big role and might take a little longer than usual. And if you could find a home catered to your needs then go for it is not a bad idea. Or else, take this time as a GO-sent opportunity, take a back seat, reflect on your life and enjoy these precious moments with your family.
