Since COVID-19 the real estate industry is uncertain and has triggered many changes in the sales and operation aspects of the business.
I'm writing about a topic that's greatly taking over our lifestyle, COVID-19, and the real estate market. I welcome you to think about your life and how you envision your family's nearby future in relation to coronavirus and its impact within our lives in the short and long term.
Some data you should consider: As of today, April 23rd 2020, it was announced that New Jersey recorded another 4,124 new positive tests for a total of at least 99,989 total positive results in New Jersey and sadly, 5,368 people have died since the first positive test was announced on March 4th.
Today, The state Department of Labor and Workforce Development reported that the number of workers in New Jersey collecting unemployment benefits has surpassed 500,000, compared to 84,000 a year ago.
There were 140,139 unemployment claims filed in New Jersey during the week ending March 21, and the number of those collecting increased to 556,000 - a 560 percent jump from a year ago. The state Labor Department said it has distributed $1 billion in unemployment benefits since the COVID-19 pandemic began in mid-March.
These families have been affected financially which makes them no longer qualified to obtain a mortgage in the United States. This means during the past few weeks far fewer homes were sold.
Due to the instability in the workforce, the Federal Housing Finance Agency, responsible for the effective supervision, regulation, and housing mission oversight of Fannie Mae, Freddie Mac (the Enterprises) and the Federal Home Loan Bank System, which includes the 11 Federal Home Loan Banks (FHLBanks) and the Office of Finance are more rigid with the imposed lending guidelines, and the conditions required to offer financial assistance.
If you are one of the fortunate individuals to be temporarily out of work and/ or still holding a steady income then I suggest you to think about the most important investment a family could ever make, buying real estate.
Below are 3 questions you should consider before buying.
1) What is my budget? A mortgage payment consists of 4 items, the principal amount you borrow, home insurance, taxes, and private mortgage insurance for those who need it. Having a clear budget in mind will allow you to live life more confidently and with more freedom to make other decisions.
Make humble choices, pick a home that fits your family's most important needs and do not overextend yourself. Keep in mind, there are other expenses to owning a home such as, moving expenses, maintenance repairs, regular utilities, water, sewer bills, etc..
2) Where do I want to live? Pick a suitable area for you and your family's needs. Your property tax is levied by the governing authority of the jurisdiction in which the property is located. Determining where you want to reside is going to help eliminate confusion and allow you to focus in searching for a home that is safe, and a community your family will thrive in.
3) Who can help me buying or selling a home? Work with a Real Estate Agent.
Do your research and speak with a couple of Real Estate Agents at a convenient time that works for you to be relaxed, without distractions, and them. With ample time to prepare you can better judge the interaction and who deserves a chance to earning your trust.
It is important to make and keep your appointments. Sometimes agents are on the go and it might not be a good time for them to attend to your call. You do not want to lose an opportunity to work with a trustworthy agent just because of bad timing, and a bad "first impression." Trust me.
As you interview with REALTORS, make your choice on hiring someone based on your desired criteria and stick with one agent. Real Estate Agents are self independent contractors, and being loyal, and setting a marketing strategy with a professional will make the home searching experience smooth and pleasurable for your family and everyone involved.
Remember, it is cheaper to own than to rent. Owning a home provide tax advantages, helps you build equity, gives you freedom to make changes, it is a solid investment, improves your credit, and provides you with the uplifting pride of homeownership.
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Thanks and all the best!
Jinet Ventura,
Building. Connecting. Empowering Communities.
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