5 Ways COVID-19 Has Impacted Today's Housing Market and How Home Buyers Can Take Advantage of the Changes

COVID-19 has impacted our world and the way we view everything today, specifically the housing market. With rapid changes, an increased number of home buyers, and short supply with high demand, many home buyers find it difficult to enter into Florida's market. The NAR released the average age of a home buyer in 2019 to be 47 (Hardy). Now in 2022, they are finding the median home buying age to be 45 with over a quarter of them being in their early 30’s (Hoffower). With changing statistics reported from the NAR, it can be inferred that home buyers must adapt to the housing market Florida is now presenting. 

With an extremely competitive market that Florida is in right now, it may be difficult for the average home buyer. In previous years, the majority of competitors were peers and other first time home buyers. Today, the market consists of a tremendous number of investors, first time home buyers, and snowbirds. In the state of Florida, every 4 homes sold, 1 is bought by an investor (Sachs). These statistics show the competition and high demand that is present within Florida's housing market.

How Homebuyers can Take Advantage of COVID-19’s Effect on The Housing Market:

To take advantage of these changes and ensure you have a strong chance of buying your dream home there are a few different things you can do. First, it is said by many that “Cash is King”; the majority of sellers will accept a cash offer before even blinking at the thought of financing with a buyer. If using cash is not an option, meet with a lender beforehand to get preapproved for a mortgage to speed up the process. A 620 FICO score or above will qualify you for a conventional mortgage without high interest rates. Bring W-2 statements from the past two years or so, paystubs, even asset information to help a lender assess how much you’d be qualified for. Because of how competitive the residential real estate market is, the best thing you can do is be quick. If you find a house you’d like to make an offer on, being pre approved for a mortgage will help avoid another homebuyer from pulling the rug from under your feet. Second, you can meet with a local realtor to discuss comps and ensure that the offer you are sending in is competitive for the market. Lastly, a buyer should be quick, competitive and don't back down. An individual should tour the home if possible through zoom, FaceTime or an in person walk through, and converse with the realtor that afternoon to place an offer for the seller to begin thinking about. Using cash, placing a competitive offer, and entering the market early will allow for home buyers to have a better chance over investors. 

The intense and highly competitive real estate market that COVID-19 has brought upon us is a challenge that can be overcome by being consistent and quick. Either submitting a cash offer or having a pre approved mortgage can go a long way in getting stomped out by other offers. Meeting with a local realtor, Eb Stone Realty, beforehand to discuss comps, and most importantly, don’t be discouraged. You may have your heart set on a house and be met with competing offers that are outside of your budget but explore different options and don’t back down. Eb Stone Realty is always here for their customers and pride themselves on emotionally satisfying home decisions. The last thing this local brokerage wants is for their customers to have buyers remorse. Meet with Eb Stone Realty today to find your next dream home!

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