COVID-19 has thrown much of our lives into a tailspin and many aspects of the economy are hurting. However, the real estate market is one industry that hasn’t been hit as hard as others. Although the market decreased by 48% at the beginning of the pandemic, the market bounced back to where it was before the pandemic hit. With that said, some agents fear that the lack of housing supply in their area may be a problem.
Due to the decreased supply, now may be a good time to sell your home fast in Las Vegas, NV because it’s a seller’s market and it’s highly likely you’ll get offers coming in at or above asking price.
If you’re putting your home on the market, you’re going to need a new house, right? You may even be considering buying a new construction home because you want a house that’s customized to your taste and need. Unfortunately, that may not be as easy as it once was. Here are a few ways that new construction can be affected by COVID-19.
One would think that construction is an essential service, and in many areas, it is. Yet, there are still some places where construction is limited and new construction is off the table entirely. Even if a new construction project began before the government placed restrictions due to the virus, some projects have had to be put on hold, thus pushing back completion dates.
2. Health and safety
As a result of coronavirus safety guidelines being put into place, the process of choosing the various finishes and materials has been altered. Before the pandemic, buyers could go to a showroom and browse the various materials, styles and other options. But now, buyers must make an appointment to do so and they cannot bring others with them to help make decisions.
One of the more devastating effects of the pandemic is the high unemployment numbers. Even though the unemployment rate decreased to 8.4% in August, it’s nowhere close to where it was before the pandemic. Although 29,000 construction employees were out of work by mid-March, the nation’s biggest building companies have been struggling to find experienced laborers. In turn, the estimated time frame for a house to be completed can be as far off as nine months, whereas it normally takes about four months.
All across the globe, supply chains have been disrupted and materials aren’t as readily available as they once were. Builders have had to change what kind of materials they use and even change what kind of designs, fixtures, and the like can be offered to buyers. Also, since supplies are harder to come by, builders have to increase their prices which makes building brand new homes more expensive.
It’s true that mortgage interest rates are at an all-time low, lenders have had to increase their eligibility requirements because they need to reduce the risk of people defaulting on their loans. So, while you may have been pre-approved before the pandemic, these increased requirements could put your financing under review. In some instances, the lender may even rescind their approval, which is devastating for the buyer.
Buying a new house is an exciting opportunity to make a house truly your own. You can pick out the flooring, the appliances, and so much more! Unfortunately, COVID-19 has made even that a challenge. But, if you do your research and find a builder you’d like to work with, keep your expectations in check and be sure to ask a lot of questions so you know exactly what you’re getting into.