Affordability is always a top concern for buyers. After all, when you’re thinking about buying a home, there are few considerations more important than home affordability. So how has the coronavirus affected affordability, and what does it mean for prospective buyers? Fortunately, there are some optimistic data on the horizon.
Lower Mortgage Rates
According to a new analysis from the National Association of Realtors, the numbers look good for home shoppers. In fact, homes listed for sale during the first quarter of 2020 were 8 percent more affordable compared to the same period in 2019. Danielle Hale, chief economist, says the COVID pandemic has lowered mortgage rates and allowed buyers to get a better deal. “The lack of affordable homes for sale has been the No. 1 issue facing home buyers for the last several years,” Hale said. “The COVID pandemic has eased the affordability side of the equation by lowering interest rates, but it has also prompted many sellers to delay listing their homes.”
Return of Sellers
“As buyers return, we’ll need to see sellers come back for the housing market to normalize,” according to Hale. That’s true. For example, the report shows that out of every 1,000 households just eight were listed for sale. That’s a considerable drop from the long-term average which is 17 listings per 1,000 households. Last week showed a slowing of the decrease in the number of house listing, so there is room for hope. While the fight against COVID-19 lingering, just how long it might take for the market to return to normal is difficult to say. However, the data for now allows us to remain optimistic.
To read more about current home affordability, follow the link to realtor.com article (source).
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