5 Ways Coronavirus is Impacting The Housing Market in Nampa

About every part of our lives has been altered by the coronavirus and COVID-19, from the business environment to entertainment to education. And in Nampa, real estate and the housing market have by no way come through unscathed. Of course, real estate is still chugging along, but there have been some changes, changes that need to be known to both buyers and sellers. So let's look at five ways in which coronavirus affects the housing market in Nampa.

1. Low Mortgage Interest Rates

One way that coronavirus affects the housing market in Nampa can be readily seen at near record lows in interest rates. And this, in turn, has contributed to the refinancing of several homeowners to take advantage of these prices.

"Here's how the housing market in Nampa is influenced by low interest rates:" On March 15, another emergency interest rate cut was declared by the Federal Reserve that took the primary credit rate to .25 percent. This reduction comes in the midst of already rock-bottom mortgage rates, which have been dropping since the outbreak started in late 2019. "And this means that" owning property is more affordable than renting in almost any location in the nation.

In order to benefit from the low rates , low mortgage rates have also contributed to more homeowners refinancing existing mortgages. The effect is a more competitive market because instead of refinancing, a large number of people who would previously have been on the market to buy a new Nampa home are now refinancing. In fact, there was a 40 percent increase in applications for refinancing from January to February 2020.

2. Business NOT as Usual

Another effect is that business in the real estate arena is certainly not being done as normal. Coronavirus has caused buyers , sellers and, in particular, agents to reconsider and change the way operations are conducted and the different sections of transactions are performed.

In Nampa, Coronavirus affects the housing market in that virtual tours replace the conventional open houses and showings in person. Furthermore, there is a drive towards more and more remote closings. This all comes as a way to minimize exposure to the virus and the possibility of contracting it.

3. Foreign Investors Entering

In the growing number of foreign investors entering local markets, a (perhaps) surprising way in which coronavirus affects the housing market in Nampa is. "Chinese investors in the U.S. residential market dominate foreign activity. [A]While COVID-19 may have a major effect on investor behavior in general, it may have a positive impact on investments in real estate as they appear to be less volatile than the stock market.

Usually, investors turn to hard assets like real estate when the stock market takes a decline. For long-term buyers, residential real estate, then, is becoming a more desirable option. And for vendors, this is good news.

4. Uncertainty Rules

One thing that can be said with confidence, no less in real estate than in any other area of life after COVID, is that ambiguity now governs. Here's what industry experts say about how coronavirus in Nampa affects the housing market:“ The coronavirus has altered everything, and every day, new information alter what the homebuying environment could look like after the pandemic passes. Although analyses of past pandemics show that home prices are not going to drop all that much, COVID-19's economic fallout may be sweeping.”

Some of the major uncertainties that Nampa buyers and sellers would have to contend with in the housing market are:

• "The prolonged suspension of payments causes" chaos in the mortgage industry , leading to a "liquidity crunch"
• Lenders who lack funds to lend to prospective home buyers
• The disappearance of subprime and specialty mortgages, which would make it impossible to qualify for individuals with less than ideal credit
• The probability of a fast recovery in the mortgage industry or not
• A wild, almost impossible to forecast, stock market
• An economy that is unlikely to recover rapidly, probably lowering demand (good for buyers, but not for sellers)

5. A Good Agent Is More Necessary Than Ever

The conclusion of all this is that it is more important than ever for a good local agent. Since the full effect of the coronavirus is still widely unknown, it is harder than ever to make informed real estate decisions. Bear in mind these uncertainties and points about how the housing market has been impacted by coronavirus and how it will continue:

• “COVID-19 has exceeded 200,000 confirmed cases, a figure that is going to continue to grow exponentially.”
• “The residential real estate market remains fairly unchanged, but in the future, economic trends could have an impact on the housing market.”
• “Lower interest rates can be taken advantage of by investors and homebuyers, and current homeowners may consider refinancing.”

So, yeah, coronavirus undoubtedly affects the Nampa housing market, but one thing remains unchanged. And the experience of a good Nampa agent is needed now more than ever for buyers and sellers, during this time of upheaval and uncertainty. Our professional agents are able to provide you the assistance you need. Send us a note, or give us a call today.