How the COVID-19 Crisis is Impacting the Real Estate Market

Starting a family? Striving to scrimp and save to buy your dream home or thinking of buying a second home?

Don't let the uncertainties of  COVID-19 take away the things you worked hard for. Whether it's the house that you've taken a loan for or the college education that you've been saving up for, make sure your family will get to enjoy the fruits of your labor! Protect what you built.

The future is made of the small, everyday decisions that shape the kind of life you've envisioned for the people you love. Sometimes things don't always go as planned. Jobs are lost during the pandemic. Unexpected expenses crop up. Not all investments pan out. It's not enough to just build a future, you have to make sure that your loved ones get to enjoy it, too, in the future.

How to do that? Find ways to ensure that all your hard work will not go in vain, no matter what! Wisely invest your earnings.

Indeed, the COVID-19 Crisis is a huge challenge that has lasting effects on local real estate market. It has also brought about changes in the real estate market. This is an extra challenge for most real estate players, and those people who are considering refinancing or buying a second home.

The fear of another outbreak or surge of  COVID-19 cases may prompt them to stay in their current homes longer. The depth of economic impact on the real estate industry is quite uncertain, just as the long-term effects from the pandemic is yet to be seen. 

While uncertainty currently reigns, it is important to take immediate action to keep an eye on a future that could be substantially different.  Another challenge is that physical distancing and the lockdown have magnified the importance of digitization.

According to the latest news on Bloomberg, Covid housing boom is even bigger than imagined. The latest Fed data on household finances shows the extent to which record-low mortgage rates and surging home prices turbocharged the economic recovery. At the highest level, mortgage originations reached almost $1.2 trillion in the final three months of 2020, the highest quarterly volume in the history of the New York Fed’s data, which begins in 2000. 

So if you are thinking of buying a home, check out  personal finance websites like MortgageCalculators.info to help you estimate your monthly mortgage payments. This is one of the ways on how you can find the best deals and save money on your home loan using an online mortgage calculator.

It's simple to use, just type in the details of your property and it does the math for you. Of course, you could do this calculation by hand, but by simply clicking on the calculate button using an online mortgage calculator could do it faster automatically.

What makes this site unique are the different calculators which have features like estimating mortgage affordability based on income, calculating the minimum income required to afford a house, calculating the home loan limit, etc. They even have an Advanced Calculator, which is a full featured mortgage calculator that allows you to input home value, principal, interest rate, loan term, start date, property tax, HOA dues, homeowner's insurance and PMI. Its features includes loan breakdown graphs, repayment charts, a balance graph, loan summary, biweekly savings, private mortgage insurance, discount points, other closing costs, monthly amortization tables, annual amortization tables, share links and more!

To give you a better understanding of the immediate market consequences, visit governmental resources ConsumerFinance.gov, FHFA, or HUD. It's important to be knowledgeable on how to navigate constant changes in the current economy to help you come up with a better decision.

There is an increase of remortgage applications with some people who are desperate to save some cash during the lockdown, due to the perceived risk in the current uncertain market. It is not yet clear to what degree this impact will be permanent or not but with most people facing difficult financial conditions and the economic uncertainty, their preferences may change and may keep buying a new home on the sidelines for some time.

While it's true that the pandemic has changed much of our life, it's a fact that many people still need to buy and sell homes. This is not a time to back down, but instead, to stand back up and return to the “new normal” soon.