Who hasn’t heard of the Corona virus / Covid-19 by now and what’s going on in the world.
But even that dark cloud is producing a silver lining of sorts for home buyers.
It’s also presented a new and unique challenge on how we will conduct business as real estate agents, buyers and sellers.
The Corona virus / Covid-19 is not just a health issues and global pandemic, it also affects our economy, including the housing market.
It’s amazing how much our world has changed and how what happens in one part of the world can affect our local economy.
In 2003, the SARS epidemic hurt the Chinese economy. The reason for that is China represented approximately 4% of the global economy at that time.
Today, at this time with the Corona virus / Covid-19 , China’s economy represents 16% of the global economy.
This has prompted investors to start buying safer investment products like the US Treasury bonds.
These bond purchases increase bond prices and pushes bond yields which drive interest rates down.
The corona virus has produced a positive outcome by making it cheaper to borrow!
So, how does this help buyers who are still looking to purchase a home?
The average interest rate on a 30 year mortgage has declined from about 3.72% to 3.51% in the last month.
Event though that may not seem like a lot, its apparent how much savings it is when you put it into dollars and cents over the life of a long-term home loan.
For example, on a $250,000 loan, a quarter point reduction in interest rates could save you around $3,000 during the first five years of the loan, and over $12,000 over the life of the loan.
So, even though the Corona Virus is an awful situation globally, and here in the United States; for homebuyers, there is no better time to take advantage of purchasing a home.
Don’t let the fears of the Corona virus / Covid-19 stop you from buying the home of your dreams when you can save the most money by taking advantage of the low interest rates.
Just remember buyers, sellers and their real estate agent must be careful in how they show homes for sale.
We recommend buyers to enter homes with protective gear (gloves & masks if necessary).
Sellers should require incoming buyers to be accompanied by agents with gear (hand sanitizers, wipes, etc) and not touch anything.
And most of all, remember to reduce the probability of contact between persons who may be carrying an infection by social distancing to minimize transmission.
And be sure to read accurate information on the Corona virus / Covid-19 on the Center for Disease Control (CDC) official website.
An abundance of caution must be used at all times to ensure a safe interaction with each other and the homes that are for sale.
Don’t forget to check out some of our current homes for sale on our featured listings page!