The coronavirus has certainly changed life in America.
If you were thinking of buying or building a new home before the pandemic hit, you might be wondering, "Is now the right time to build my new home?"
Now is the time to buy – if you feel that your job is stable during this nationwide situation.
Daryl Fairweather, chief economist for Redfin, said, "Now is the time to strike... People who commit now are going to have an advantage over people who wait."
"Now is the time to strike... People who commit now are going to have an advantage over people who wait."
Here are 3 quick reasons to move forward with building your new home during the coronavirus.
1. Historically Low Mortgage Rates
Mortgage rates are at their lowest since 1971.
How low is that? The average rate on a 30-year fixed rate mortgage fell to 3.207% at the beginning of March.
And although mortgage rates are seeing small fluctuations week-by-week, the New York Times expects mortgage rates will likely stay historically low for a while.
Now is the time to get a good mortgage. If you build your home soon, you'll likely get a better mortgage than you would've gotten just two months ago.
If you build your home soon, you'll likely get a better mortgage than you would've gotten just two months ago.
Kris Hershberger, president of Middletown Homes, agrees. He said, "Rates are historically low. Prices won't be any better than they are right now."
2. Demand for Housing is Still High
The demand for housing is ridiculously high, and that has not changed since the coronavirus started spreading.
Just four months ago in December 2019, there were not enough houses for sale to meet buying demand (which is a good reason to build your own custom modular or manufactured home through Middletown Homes).
Demand for homes is still high despite the spread of the coronavirus. People need places to live, and low mortgage rates help make home buying more accessible to those who pull the trigger.
That's why Daryl Fairweather can say those who buy now will have a big advantage over people who wait. Demand is high, prices are low, so buyers who wait miss a huge opportunity.
3. Home Prices Will Increase When This is Over
Low mortgage rates won't last forever. We expect home prices to go up sometime after the coronavirus passes (and it will pass!).
The two trillion dollar stimulus package recently passed by Congress will be a reason for this.
While the bill is necessary to stimulate the economy, inflation will likely take place, increasing home prices.
Ken Johnson, an economist at Florida Atlantic University, said, "If the stimulus package ends up being more than we need, this will almost certainly trigger a non-trivial amount of inflation in the economy, which will increase mortgage rates, which, in turn, will place downward pressure on housing prices."
Should You Build Your Home Now?
We think the clear answer is, without a doubt, yes!
If you're confident that your job is stable, it is wise to take advantage of the current market.
So when should you buy?
While you don't have to build in the next two weeks, you should pull the trigger in the next 30 to 60 days to take advantage of the current market.