5 KEY QUESTIONS FOR BUYERS AND SELLERS
- How is the COVID-19 crisis affecting prices? Tight housing supply, a factor in pushing prices up in high-demand markets like Northern Colorado, will be a factor in keeping prices flat in our region in the near future. That’s the forecast from Lawrence Yun, chief economist for the National Association of Realtors. Nationally, Yun expects a mostly stable market for the rest of the year.
- Is it the right time to get in the market? Logically, demand will slow. Still, we continue to see activity in our area. In fact, many see real estate as a safe haven from riskier investments. If you’re thinking of buying or selling, our advice is two-fold. First, know your goals – i.e., do you need to move by a certain time? Next, work with a trusted advisor to decide if now is the time to act.
- Will interest rates go down? Rather than lean on predictions, we encourage you to act on what we know today – that interest rates are at historic lows. Better to seize upon the certainty. And keep in mind that for every 1 percent difference in rates, your purchasing power goes up or down by 10 percent.
- Will the housing market suffer any long-term damage? We think the answer is no. Housing is one of life’s three basic needs (food, clothing, shelter), and people will always buy and sell real estate. When the stay-at-home and safer-at-home orders are lifted, we believe many clients who postponed decisions will be eager to act.
- Should I wait to buy? Truthfully, the best person to answer that is you. But remember, two core fundamentals hold true. First, housing is one of the best investments you can make. Home has never been more important than now. Second, more retirement wealth comes from real estate equity than any other investment. Why wait on getting started?
Matt Thompson, The Group; Thank You!