The last few weeks and months have caused a major health crisis throughout the world, leading to a pause in the U.S. economy as businesses and consumers work to slow the spread of the coronavirus — including those of us on Staten Island.
The rapid spread of the virus has been compared to prior pandemics and outbreaks not seen in many years. It also has consumers remembering the economic slowdown of 2008 that was caused by a housing crash. This economic slowdown, however, is very different from 2008.
One thing the experts are saying is that while we’ll see a swift decline in economic activity in the second quarter, we’ll begin a sharp rebound in the second half of this year.
According to John Burns Consulting (a company that provides independent research and consulting services related to the U.S. housing industry):
“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices), and some very cutting-edge search engine analysis by our Information Management team showed the current slowdown is playing out similarly thus far.”
Given this situation, if you’re thinking about buying a home this year, the best thing you can do right now is use this time to get pre-approved for a mortgage, which you can do from the comfort of your home.
Sheltering at home in response to the coronavirus (COVID-19), Staten Island Realtors are working remotely and are available via virtual technology to assist home buyers and home sellers.
In a recent interview, Scott Setaro, 2019-2020 president of the Staten Island Board of Realtors®, said:
“Mortgage lenders and title companies are changing their norms to adapt to the new way we are operating, by utilizing virtual closings, e-signatures and evolving technologies. It’s an across-the-board change on how we do business.”
Pre-approval will help you better understand how much you can afford so that you can confidently do the following two things when you’re ready to buy:
1. Gain a Competitive Advantage
Today’s low inventory, like we’ve seen recently and will continue to see, means home buyers need every advantage they can get to make a strong offer and close the deal. Being pre-approved shows the sellers you’re serious about buying a home, which is always a plus in your corner.
2. Accelerate the Home-Buying Process
Pre-approval can also speed-up the home-buying process so you can move faster when you’re ready to make an offer. Being ready to put your best foot forward when the time comes may be the leg-up you need to cross the finish line first and land the home of your dreams.
Bottom Line
Pre-approval is the best thing you can do right now to be in a stronger position to buy a home when you’re ready. A Staten Island real estate professional, a Realtor member of the Staten Island Board of Realtors® (SIBOR), can advise you in getting the process started.
The information contained, and the opinions expressed in articles, videos, or infographics posted or shared by the Staten Island Board of Realtors® (SIBOR) are not intended to be construed as investment advice. SIBOR does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. SIBOR will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein
