Is Now A Good Time To Buy

Dated: 05/08/2020

Views: 176

Image title

With social distancing being an important part of life at the moment and so many parts of the economy suffering the effects of state lockdowns, some are worried about how all of this will affect the housing market. This is especially a concern for those who were hoping to buy a new home and have seen their plans potentially derailed by the pandemic. Is this a good time to consider buying a new home, assuming that it’s even safe to do so?

Depending on where you live, the answer may be surprising.

It’s a Market of Opportunity in Some Markets (but not everywhere)

With the current state of the world, the demand for real estate has dropped significantly in some parts of the US and Canada. This has left many of those who have already listed homes for sale or who were planning to list over the summer in a position where there are far fewer people looking at their properties. For some sellers, this isn’t much of an issue; they can simply wait it out and stick to their previous plans. A lot of sellers don’t have that luxury, though. This creates a market where a lot of sellers are willing to consider offers that they wouldn’t have in the past, giving potential buyers more control in the home-buying process. This usually helps to balance out the market, with listing rates slowing down to meet demand until things pick back up again.

With all of that said, not every market is experiencing this pandemic the same way.  In fact, many markets remain a seller’s market due to low inventory, mortgage rates, or any number of other local demand characteristics.

Demand Is Staying Low in Most Markets

Most of the time, a buyer’s market is caused by shifts in the economy that have people trying to save money; an example of this would be a recession. These economic shifts temporarily reduce the number of people who are willing to take on large debts, creating a glut of sellers trying to entice a smaller pool of buyers. The buyer’s market typically fizzles out once the number of sellers shrinks or the economy stabilizes.

In the current market, the economy certainly plays a factor. There is an external factor at play here as well, however: The physical distancing that COVID-19 requires has added additional worry about open houses and other forms of interpersonal contact that are traditional when buying or selling a house. There’s still a lot of uncertainty surrounding the pandemic, including how long it will last, so with this external factor and the currently stunted economy we could see demand stay low.

Market Recovery

This isn’t to say that the market won’t recover, of course. Some states have already started reopening non-essential businesses and other parts of the economy, and other states have plans to start reopening soon. The economy will likely stay sluggish for a while, but reopening is the first part of recovery. Even the pandemic is becoming something less of a factor as people continue to practice social caution and science continues to work toward treatment and vaccine options. While market recovery may take longer than in the past, a recovery will happen, and the good deals that buyers can find now will become less common as things move forward.

Buying Safe

If you do decide to shop for a home in the current market, make sure that you’re smart about it and stay safe. Maintain all physical distancing practices while looking at homes, even if there is only a seller or agent present. Other no-contact options such as virtual tours or virtual closing with digital signage are options, and if touring the property request that any doors or other barriers be opened before you arrive to reduce contact. Wear a mask, bring hand sanitizer and take the same precautions that you would in any other social situation. This may seem excessive for viewing a home, but keep in mind that these practices not only protect you, but also protect the seller and agent as well.


Contact a GroupWatson Agent TODAY for Professional Advice & Expert Direction.

~Experience the GroupWatson Difference~

Call or Email Today!

972.370.1775 | BuyOrSell@GroupWatson.com

*GROUPWATSON'S FEATURED LISTING OF THE WEEK*

830 Essex Dr, Prosper Texas


Image title


Blog author image

Christy Hoisington

Christy grew up in West Texas and is a graduate of Texas Tech University with a bachelor’s degree in Family Studies. She and her family have been residents of The Colony, TX for 3 years and are very....

Latest Blog Posts

Tips For Bringing A Pro Into Your Bubble

While everyone is home trying to stay healthy, there are a lot of people who have taken to trying to do things around the house on their own. This has helped homeowners keep busy when they have

Read More

How To Support Non Essential Home Pros

There has been a lot of focus in recent weeks on “essential” workers in our economy. In most places, this includes at least portions of the construction industry as well as a few other types of

Read More

Is Now A Good Time To Buy

With social distancing being an important part of life at the moment and so many parts of the economy suffering the effects of state lockdowns, some are worried about how all of this will affect the

Read More

Property Tax Protest Tips

Texas property tax appraisal notices are hitting mailboxes all over the state this time of year. Some counties have already mailed them out, while others plan to do so in the next couple of weeks.

Read More