While our lives have changed suddenly and drastically, and we are all being extra vigilant during this tumultuous time, the decision-making factors associated with buying a home remain the same.
- Buyers will still be impacted by life events, personal finances, job relocation and stability, available housing supply and mortgage rates, to name a few.
- What also remains the same is that, from a long-term perspective, the benefit of wealth accumulation, positive intergenerational effects and social gains of homeownership are undeniable.
- The current crisis has not undermined the long-term value of owning a home in California.
- In addition, the current low-rate environment offers first-time homebuyers a unique opportunity to get their foot on the property ladder at a historically low cost.
- For those in the financial markets, many potential buyers will have seen their wealth negatively impacted, which could reduce their willingness to purchase and/or the amount they are able to offer on a home. Alternatively, they could be incentivized to invest in real estate as a strategy to protect their assets from further financial market turbulence.
- The bottom line: Each individual homebuyer should consider their own specific personal and financial circumstances and understand that while the risks from coronavirus as this ‘new norm’ are certainly more elevated, the economy and housing market will recover and housing in California will resume its upward trend.