Recently, there is a huge impact that Coronavirus affects housing sales. The market has critically hit the coronavirus lockdown. It causes the displays to be postponed as well as selling in progress faced delays.
We are facing new fears that the economy will fall. Of course, the house price could drop too. If you plan to sell your house in the following month, this can be a good concern.
- How does Coronavirus mean for property prices?
Due to the lockdown and the uncertainty about Coronavirus, the housing market begins to start back up. The homeowners plus potential buyers are questioning the property rates in the upcoming months.
Meanwhile, there is plenty of prediction about this case out there. It is difficult to say with certainty in the future.
The only thing that we are sure about the economy that is adjusted by the lockdown. It means near the future that the demand for property will decrease its prospective buyers.
You will be used to the ‘wait and see’ approach. Moreover, those potential buyers will find it hard to make a fast decision.
Besides, we might be facing an economic recession. This pandemic can worsen the economy, including property sales. Of course, Coronavirus affects housing sales, and it could lead to the falling house prices.
Research run by Nationwide mentions that the housing price falls 1.7% in May if we compare it to the preceding month. This is the worst fall in a month for 11 years, and it can happen only during the financial crisis.
During the lockdown, we are presented with a sharp economic contraction. It happens because of the necessary measurement decision taken to lessen the virus spread.
There are many policies taken to support businesses growing. Individuals should be able to help generate an economic rebound as well. Hopefully, this can minimize the impact on the housing market.
- How does a fall in property prices mean for you?
It brings you an important issue, especially for potential buyers. In this stage, you will see yourself in three different roles.
First, if you plan to stay at your house, you don’t need to worry. You don’t want to see your asset value fall because a home is the biggest asset that you own. So, the property prices fall will not affect you a lot.
Don’t forget to consider the long term. For you who decide not to sell their house, a fall in value is merely a loss in the paper. So, it doesn’t hit you so much.
Nothing should make you worry about Coronavirus affects housing sales. Thus, if you are not planning to sell your house, you don’t be bothered by property prices.
Second, if you’re hoping to sell, you will see it differently. The housing price fall can be frustrating if you plan to sell in the following month.
Several predictions imply a price fall. Meanwhile, the others show that the potential buyers hold their plan.
You can decide to sell your house and be ready to negotiate with prospective buyers. You can meet the real estate agent and make your home valued. You can focus on sales in the nearby area.
You can take a delay selling decision if the offered rate doesn’t fit into your preference. The housing sales will be better when you consider it as a long term plan.
Third, if you are a first-time buyer, you will get the benefit. You can get the money and deposit it to your seller. This view is very beneficial for you who plan to buy a house during the pandemic.
You can have a look at what is available and compare each of your choices. It is commonly known that the property value is connected to how much you want to pay it. So, don’t be doubtful in deciding it.
The lower property price will make you have a different view. It will make you attractive due to the viewpoint as a whole package. You see it as a bonus, you get what you want in an all-in-one package.
It is better not to see it as a bargaining point but view it as what does it fit you. Don’t forget to always consider mortgage repayments as well. How it would be affordable for you.
You don’t need to worry about the bank checking. They will review the stress-test mortgage for each of the applicants through several steps. Thus, a mortgage proposal may be more economical than supposed. Hopefully, the above article shares valuable information. Although Coronavirus affects housing sales, you should make a smart decision for the long term