22 Apr Why is now a good time to buy a home?
The covid-19 health alert has paralyzed almost all sectors one way or another. In the real estate sector, buying and selling operations have suddenly come to a stop. We will return to normal and everything will be reactivated again, it is a good time to buy a house. In this post we tell you the reasons.
We are in a new unprecedented situation, but what we do know is that, for good or for bad, opportunities come hand in hand with crises. In the real estate sector we are already seeing price drops. The Spanish Association of Real Estate Personal Shoppers, foresees a 10% drop in the average price of housing in Spain this year.
If you were thinking about buying a house before this covid-19 crisis, now is the best moment, here are the reason:
• Given the economic uncertainty, some operations have been postponed but there is still a need to sell so it will be easier to negotiate property prices.
• Prices had already started to drop this year, now that tendency will continue, although in a more pronounced way.
• The properties have been ‘frozen’ all this time in the market without having received physical visits, so owners are more motivated to show their properties and sell them.
• New houses for sale will continue to come out, the market offer will increase. There will be more supply than demand, which will result in lower prices.
• If you have a stable job or savings, you will have no problem getting financing.
• At the moment we cannot visit houses, but almost the entire offer is online and can be visited virtually. Before the final in-person visit, several important factors can be assessed online: analyzing the real price, checking the registration situation of the property, inquiring about the neighborhood community, the area and market expectations.
• You will get better prices to perform the necessary reform or update of the property, many businesses have been without activity and when they return to normal they will compete for clients
• Since the purchase process is long, if you start it now you will be able to move in at the end of the year. It takes a few months to sign the deed of sale and a few more months to do reforms. If it is in good condition you could move in even sooner.
I’m still working from home, you can contact me if you want to buy a house in Madrid.