With so much uncertainty across industries and locales right now, it’s no surprise that purchase patterns have changed around the country. Soaring unemployment rates have put a dent in spending habits, leaving many holding onto their cash and avoiding unnecessary spending.
Real estate hasn’t been immune to these changes in buyer behavior but despite the fluctuations in the market, our basic need for shelter and a few timely incentives prove that now can still be a good time to invest in a home.
A Unique Summer
This summer is unlike any other for real estate investors. The typically booming homebuying season is notably different from previous years, with less buyers in the market and interest rates as low as 3.25% for a 30-year fixed-rate mortgage.
For investors, this may be one of the few traditionally peak seasons where competition, interest rates and sale prices are lower than ever. Starting your property search now gives you the opportunity to take advantage of these unique market conditions.
Interest rates are expected to remain historically low throughout the summer as more measures are put in place to protect consumers and the economy. Less buyers in the market means you’ll have your pick of available properties. Fewer competitors may also provide opportunities to invest in new markets that have previously been unattainable.
A New Way of Buying
If you’re the kind of investor who likes to search and shop for homes online, the industry’s recent new tech adoption may be to your advantage. As real estate adjusts to accommodate the need for virtual resources, more steps of the homebuying process can now be done online — from conducting nationwide property searches to signing closing documents electronically.
Hubzu’s online home auction marketing platform has always been tech-driven but recent events have prompted the implementation of resources such as virtual tours, which offer investors a 3D view into their favorite properties, and an upgraded mobile app for investors on-the-go.
Starting your home search this summer allows you to utilize these new and improved digital tools that make investing from the comfort of your own home easier than ever.
An Evolving Economy
Much has been said about the current state of our national economy, with some economists considering the possibility of an upcoming recession. Fortunately, the housing crisis of the early 2000’s brought about contingency plans that have prepared the country to deal with a similar predicament in the present day.
With the protections put in place by the Federal Reserve, along with the stimulus package offered to many households in early spring, investors may be able to rely on these safety nets without assuming significant economic risk.
The outlook for summer 2020 may not be what real estate investors were expecting this time last year, but that doesn’t mean all hope is lost. Lower mortgage rates, an increase in online resources and economic safeguards for both the housing market and individual households not only enable investors to continue buying properties during these uncertain times, but also offer unique incentives that could potentially sweeten the deal on your next investment.
Ready to buy your next property this summer? Start your search on Hubzu!
For additional resources to help you navigate the current real estate market, please visit our COVID-19 resource hub by clicking here.