Crisis or not, people will need shelter. That is one clear truth in the cloud of uncertainty brought about by the COVID-19 pandemic. This is also one of the motivating factors behind every Realtor’s desire to keep business running in Charlotte, NC and the rest of the Triad area despite the risks they could encounter while in the line of duty.
Taking a dire hit
With the economy taking a dire hit from the effects of the pandemic, it may seem that buying a home should be the least of your concerns. More than the threat to one’s health, there are also economic repercussions that are hitting close to home. Unemployment claims in almost every U.S. state have reached unprecedented levels. NBCNews.com reports that almost 650 thousand unemployment claims were submitted to the Department of Labor for North Carolina alone as of March 14. That’s approximately 12.7% of the labor force in the state.
For those still employed, they may be enduring pay cuts and/or reduced hours as their respective companies could be on survival mode.
To keep the economy afloat despite the pandemic’s debilitating effects, the Feds decided to bring down interest rates to their lowest levels. Mortgage rates soon followed with figures going down to almost 0%.
The silver lining
If one is to look for a silver lining amid this uncertainty, there is the argument that the origins of this recession are biological, not economic. The real estate market in North Carolina has been bustling with activity prior to the lockdowns that brought the country into recession. Thus, it could easily return stronger – albeit, slowly – once this pandemic blows over.
Interest rates at their lowest lows are also not seen to change very soon – and with that, so will mortgage rates. Thus, even if the health crisis is finally averted, the Feds may most likely keep the status quo until businesses and industries rebound in the new normal set by the specter of COVID-19.
Any real estate broker with years of experience will know that recessions come and go but the housing market will always prevail due to the fact that it caters to one of man’s basic needs. In fact, those who were bold enough to buy a home during the 2008 global recession state that they have no regrets in doing so. When the economic climate got better, the market value of homes in their area shot up exponentially, rendering their homes unaffordable had they decided to wait it out.
Nevertheless, caution is still the order of the day as the uncertainty on when the economy picks up where it left off is still up in the air. Experts note that if you are still employed despite the economic slowdown, you can ride the wave of opportunity presented by rock-bottom interest rates. You may not even have to apply for refinancing for the duration of your mortgage term. Moreover, if you prepared yourself financially for the prospect of buying a home just before the pandemic hit, then there’s no better time than the height of this crisis to make that purchase.
The best way to find out if you’re ready to buy that home in Charlotte and the Triad area even as the pandemic is still upon us is to consult with the experts – that’s our team at Valarie R. Brooks Real Estate and VRB LifeStyle Properties. Give us a call at 704.488.5458 or send an email to Valarie(at)ValarieRBrooks(dotted)com so that we can present you with sound real estate options and advice.