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Hi Taylor
- My husband and I were thinking of buying a house in the spring but
held off because of everything that's going on. What are you thinking
might happen with the market in the next few months? - Valerie
Hi Valerie - I've been trying to stay out of the prediction game
in 2020 since every month seems to throw a new wrench in our gears.
Honestly, I feel like house prices will be all over the place depending
on where you live and what's in the news that week. Some points to
consider: |
1. Springs
sales may have moved to summer. Most realtors I have talked
to are seeing good signs after a shaky March, April and May. Confidence
plays a massive role in house prices, so the drop in stock prices
sent a lot of people running scared. Even though unemployment
numbers are relatively high, a large cross-section of the population
hasn't felt the economic hit and is regaining confidence in real
estate. Who knows when things will change again, but right now
it looks like there might be a summer surge that could, in part,
make up for any dip in the spring.
2. Keep an eye on the renters market. Property owners haven't
seen a fallout in home prices, but we might be looking at more
and more empty rentals if we can't move forward with a safe reopening.
If workers have to move out of apartments because they can't afford
rent, and then landlords can't find people to fill those vacancies,
we'll suddenly have a ripple effect that will touch all sectors.
If you see a rise in empty rentals, it might be a good time to
put in a low bid on a house and see what happens. Don't forget
to look at other market indicators while you're checking the house
trades.
3. Be conservative. I'm all for homebuying, especially
if you've saved up a good down payment and have a steady income.
However, with things being what they are, you should make sure
you're not rushing a decision or taking on more debt than you
can handle. Consider that it takes a few months for a sale to
finalize, and then think about how much things have changed in
just the last three or four months. Maybe this ends up being the
perfect time to buy a home, but if you have any doubts you should
give serious thought before acting. It'd put a strain on your
finances if you took on a mortgage and then you or your husband
got laid off the following week.
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In short, the
decision to hit pause in the spring was probably the right one. If
you still have some of the same apprehensions now that you did then,
sit tight. If the money is there and the perfect house pops up at
the right price, go for it. Good luck!
© Taylor Kovar
July 6, 2020
More "Go Far With Kovar" |
| Legal Disclaimer:
Information presented is for educational purposes only and is not
an offer or solicitation for the sale or purchase of any specific
securities, investments, or investment strategies. Investments involve
risk and, unless otherwise stated, are not guaranteed. Be sure to
first consult with a qualified financial adviser and/or tax professional
before implementing any strategy discussed herein. To submit a question
to be answered in this column, please send it via email to Question@GoFarWithKovar.com,
or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.
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