Should I buy a home know or wait due to coronavirus?

Question

Hello there, My names Jonathan and me and my wife were looking to purchase our first home and then the Coronavirus took over. The questions we have is, should we wait to buy and see if the homes are going to drop in price or just buy now? If anybody can give me some advice please and thank you.

Dennis Cosgrave · Answer

Unless you are under pressure to buy, I would wait until the dust settles. Also, when you do decide to buy, try to keep your leverage as low as possible. You will likely have to stay in the home for at least 5 years, maybe longer. We are currently in uncharted waters, so we have no historical reference as to how this plays out. One thing is certain. The longer the shutdown continues, the more severe the damage to the economy, and the longer it will take to recover. For a better perspective, I suggest you watch the following video. Food for thought.

https://www.youtube.com/watch?v=bWobMCzu1wg&t=4170s

Dylan Vargas · Answer

@Jonathan Almanza  @Dennis Cosgrave Welcome! I agree with Dennis. Wait and see. Get pre approved and ready to pull the trigger but wait and see. Things are getting a little messy. You lose nothing by waiting and see how things play out. You will find deals as people will have lost jobs and will need to sell. Just my two cents. Good luck and keep us posted.

DJ Dawson · Answer

I would wait and see man, however first time home buyers USUALLY in Sac are looking in the under 350k range. Those houses are still going and going fast. If you need to buy something relatively soon it may not be a bad idea but only if your budget works with the mortgage payment. Also how secure is your job right now? your wife's job? all questions to consider. If you are chilling right now just waiting to make the right move though I would suggest wait at least 60 days and see how this whole thing shakes out.

If you looking for some advice on areas in Sac that can might fit your needs feel free to reach out

Tiffany Drahonovsky · Answer

If you are going to house hack, you'll keep your leverage and expenses lower. I believe there are always deals. Why put your life on hold? Go find what meets your requirements vs waiting for someday or the bottom... there are millions of people on this earth and millions of opportunities. Everyone is in a different life stage. There are plenty of people who are boomers and tired of dealing with rentals, so if you're thinking of house hacking... I'd target long term landlords and see if they want to get out. They may also be interested in seller financing... can be a great option for both parties. Lenders all have different requirements. Chase is in the news about higher credit score and down payment needed... that's only one lender. There are TONS more as well as private lenders. Bottom line- go after your goals. There are always opportunities in every market. I'm 48 and just got my first SFR investment property this Jan. I've owned 3 homes myself and wish I would have started down this path sooner. Keep an open mind and make the process fun! Wishing you much success in this journey, come join us!

Marian Smith · Answer

@Jonathan Almanza  A bird in the hand is worth two in the bush.  You cannot know how things will shake out, but you can know your own market.  Are home owners stretched to the edge?  Or just renters?  If something comes up that you like and feel comfortable with price wise you may have less competition now than later.  There is nothing stopping you from offering below list because you think values will go down.  Seller may accept and may not.  I will say, cal is so expensive even a 5% drop is not chump change....but financing an extra 5% over possible August’s prices may turn out to be worth it.  Or not.  Life is often a crap shoot.

Katrina Moseley · Answer

@Jonathan Almanza

You can’t time the market so look at the market in front we are in today and get real clear on what’s important to you and what’s affordable to you.

Nick Rutkowski · Answer

@Jonathan Almanza

Well you have two choices, buy now at a high price while lenders are relaxed on lending standards or wait until standards tighten up and housing prices drop. My question to you, do you have the capital saved up for 20% down if you wait?

Carmichael Lewis · Answer

Not sure about the market out there, but keep your eyes open. Prices are constantly being cut, the interest rates and properties. If you have a great deal now, run for it. This pandemic could last a while. Definitely dont wait on the pandemic, you could miss a opportunity. Best of luck.

Jonathan Almanza · Answer

@DJ Dawson My jobs secure still working fine and same with my wife. Thankfully the coronavirus didn't affect us job wise. I'm most likely going to wait it out 60-90 days and see how this all unfolds. How do you think the RE is going to play out in Sacramento/Nothern California?

Jonathan Almanza · Answer

@Dennis Cosgrave I might just do that and wait it out until I see how things are. This is guna be my first home I buy so I want to get a good deal. This coronavirus isn't affecting me or my wife thank god we still are working. I know a lot of people say that the house market won't crash but the proof is in the pudding with this.

Should I buy a home know or wait due to coronavirus?

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