Why Now Is A Great Time To Buy Property (Despite The Pandemic)
Last Updated on March 17, 2021
These are true facts for the Kingston Market.
Considering the widespread damage the COVID-19 pandemic and its resulting restrictions have had on industries and businesses across the world, you would assume real estate would be on its knees as fewer people would leave their homes to buy property.
You would be wrong though.
All across the globe, governments have implemented measures to ensure the housing market retains its buoyancy throughout the remainder of this pandemic, with people moving in and out of homes at essentially the same rate as they were in a pre-COVID world.
The UK is just one example, where the Stamp Duty Holiday and an extension to the Help-To-Buy scheme have resulted in a positive performance across their market.
But is it really a good time to buy? There may be a lot of bluster from companies and governments that need to keep the real estate train rolling, but should you be looking for your new home right now? Here’s why it just might be a good idea.
Real Estate is still a Thriving Market
We may be living in a period of economic downturn, but that hasn’t stopped people from selling and buying homes.
Unlike the 2008 economic crash, the pandemic itself seems to have had no impact on people’s perception of the market and, coupled with a desire to retain high prices, has led to many people continuing as normal, resulting in major success for the market.
From major cities to more relaxed residential areas, there is still a healthy demand for homes across the nation. While some buyers are scrutinizing the economic health and pandemic control within some major metropolitan areas, sales have remained steady in areas where home purchases outrank rental numbers.
Despite the pandemic, people will still always need somewhere to live and be forced to move for a number of reasons. There are new buyers emerging from the rental market and existing owners looking to find a new space or expand their portfolio after a period of reflection throughout 2020.
The Industry has Almost Fully Moved Online
In 2021, the need for in-person viewings and meetings hasn’t quite been rendered redundant, but they’re easier than ever to get around.
While it’s recommended you still view a house and neighborhood in your own time before putting any money on the table, there are methods of doing so safely from your own home in certain circumstances (such as a pandemic).
There are now services online, largely hosted by real estate agent websites, that allow you to:
- View properties in VR.
- View drone footage of surrounding neighbours.
- Access mortgage brokers and other essential services
The advancements of PropTech in recent years has made it easier to both view and purchase a property in difficult circumstances, giving you a better picture for cross-country moves and huge lifestyle changes.
Thanks to machine learning and algorithm developments, these services can be tailored to you and your expectations, providing you with a comprehensive list of properties that fit your needs and desires.
There’s Less Competition Right Now
Despite people buying at essentially the same rate, there is actually a reduced level of competition for individual properties.
This is perhaps why so many sales are going through, as the typical hang-ups of particular buyers and competition for an acceptable offer have been taken out of consideration.
With fewer people trying to barge through the door, it makes it easier to secure a deal. To get your initial, lower offer accepted, now might be the time to catch desperate sellers looking to move out.
The typical property buying experience is an arduous one, filled with pressure. If you can avoid that by navigating this unique buying period, it might just be worth it.
Mortgage Rates are Low, Low, Low
However, it’s not hard to see exactly why now is a good time to buy, and why Canadians across the country have flocked to buy new properties.
It’s the historically low-interest rates.
The uncertainty of 2020 led to significantly low-interest rates becoming the norm across Canada, with many people eager to stimulate the economy and simplify the money lending process.
Low-interest rates aren’t just important because they make things cheaper, but also because:
- They allow buyers to save more substantial amounts monthly.
- It’s easier to recover debt.
- Buyers can invest in larger purchases.
- Banks can lend more.
This affects every buyer, from first-time young families to experienced landlords. The current mortgage rates are a sign that buying now might be the best option before they (presumably) skyrocket.
Tips for Buying During a Pandemic
As you start your home shopping, you’ll want to take some of these key tips to buy property:
Utilize local businesses
Want to get the best out of your new local area and ensure you’re making smart location choices? Make use of local real estate businesses.
Sticking to local real estate companies won’t just give you a more attentive service, but greater insight into the area.
For example, if you’re shopping around in Kingston for a new home, it makes sense to work with local experts such as Breezeful’s Kingston mortgage brokers, who will offer you the right finances for the area. And there are equivalent local experts for any area that you might want to move to.
These businesses, whether they’re surveyors, agents, or developers, will have a unique insight into local trends and history, helping you to navigate your way towards a dream new home.
Ensure you have a steady income stream
Many Canadians are struggling with a pay-cut or job loss, perhaps for the first time in their adult life. If you’re one of them, now might not be the best time to invest in a new home.
When you apply for a mortgage loan, banks are going to want to see evidence of a steady source of income, on top of funds for down payments. That can be hard to do when you’re out of work.
Don’t push yourself financially just to take advantage of a fertile market. The benefits aren’t worth the risk.
Vaccines may have us dreaming of life after COVID, but we’re not out of the woods yet.
The housing industry is still in a state of flux. Waiting on COVID to disappear might mean saying goodbye to your dream home. If you operate intelligently and have your finances in order, buying property during the pandemic might just be the way to go.
If you enjoyed this read, check out some of our other blogs:
- BENEFITS OF A HOME INSPECTION
- 7 HOME FEATURES BUYERS WANT MOST
- 5 AMAZING DE-STRESSING TIPS TO REDUCE MOVING ANXIETY
- MOVING COSTS IN WATERLOO REGION
- SMALL ROOM MAKEOVER 101 – HOW TO MAKE IT LOOK BIGGER & BRIGHTER