The pandemic has affected companies in all sectors of business. Tourism and hospitality have taken some of the hardest hits, with hotels and airlines being forced to restructure their businesses to stay afloat. The adverse side effects continue to evolve in other industries as well, like the restaurant industry, creative fields, and construction. Even as major businesses suffer losses, we’re seeing a unique situation come up in the Las Vegas real estate market. Lockdown protocols that left citizens forced to stay indoors for the better part of a year have now resulted in more people interested in moving to bigger places or moving to locations outside of the major cities. Though robust vaccine rollouts have helped get us back to a sense of normalcy, hybrid work solutions and virtual learning programs continue to be prevalent. Our homes will continue to play a more significant part in our daily lives in 2022.
The real estate market is currently in quite a conundrum. 2020 has definitely been a seller’s market with demand at an all-time high and interest rates at historic lows; home buyers may even find themselves in bidding wars with all-cash offers at play. Real estate experts expect this to continue well into the following year. While the interest rates are currently at the lowest they’ve ever been for years, and properties located in suburban areas or less densely populated areas become more popular, why wouldn’t now be the time to buy?
The truth is that a multitude of factors goes into deciding when to buy a home. If you’re looking into whether now is the best time to make one of the most significant purchases of your adult life, factor in these aspects of stability into your decision.
If the pandemic has shown us anything, it’s shown us how quickly things change at the drop of a hat. A stable and reliable income is crucial to take on this type of responsibility. It forces you to carefully think through the next 10 to 15 years of your career growth. If you’re looking to suddenly change career paths or take a leap of faith in a new sector, now may not be the best time to take on a hefty monthly payment. Banks also look at your previous employment history and whether it’s consistent or erratic factors into issuing you a mortgage. Take into consideration how any disruptions to your cash flow may lead to delayed payments, and be aware of excellent mortgage refinancing offers in your area should this become a concern.
Going into the type of debt needed when purchasing a house is no small thing. It takes a significant chunk away from your income which you could be spending on other essentials. Before you think of buying, make sure that your savings are intact and will be enough to cover all of your monthly costs should an emergency arise. Experts have a different rule of thumb between a nest egg that’ll cover six months to a year’s worth of your expenses being the ideal amount. Buying a house also means taking your down payment and closing costs out of your savings which is something to prepare for beforehand.
Traditionally this would mean taking into consideration if you’re ready to settle down. A home has usually been closely equated to starting a family and the likes, but even if you’re not looking to go the traditional route, are you ready to be tied to one place for the foreseeable future? Is the area you’re considering close to your place of employment or conducive to future changes in your career? Is the home located in a good school district? Is there a great support system or community that’s present? They are all questions that you should take into consideration before buying property.
Currently, properties are selling well above their asking prices, according to experts. The increase in demand favors the sellers over the buyers. However, if you’ve found a property that’s exactly what you’re looking for, you should consider making an offer regardless of the market’s current state. The market ebbs, flows, and trends will continue to develop, but prioritizing your checklist will yield more favorable results in the long run. The heightened competition in the current market may lead to you looking at multiple properties and even putting in offers to no avail. Don’t be discouraged. Working with a great real estate agent can let you in on properties about to hit the market or inside tips and tricks to buying a home.
There’s no perfect time than when it’s actually the ideal time for you. Keep in mind that though interest rates are low, the market currently favors sellers as actual property prices have not significantly dropped.