Is it the Right Time to Shop for a Second Home?
If the COVID-19 pandemic put your plans for a vacation home on hold, or you expect a second home to have an integral role in your long-term plans, the right time to buy could be near. While health and safety remain the top priority for every community, current market conditions and technology have combined to make the real estate industry one of the most resilient during the Coronavirus outbreak.
In particular, individuals who are confident in the stability of their incomes and homeowners with substantial equity may find that now is the best time to make their dream of a vacation home come true.
Low Interest Rates
Average mortgage interest rates fell below three percent for some buyers this summer and remain historically low for well-qualified applicants. Besides offering an opportunity for homeowners to refinance higher-cost mortgages, low-cost borrowing can make a home equity loan or mortgage on a second home more attractive.
Consider speaking with an experienced lender about your financing options. You may find that lowering your current mortgage payment, accessing a home’s equity, or the affordability of a second mortgage has made a vacation home a realistic possibility.
In addition to the flexibility in funding a second home’s purchase, many vacation destinations are expected to experience an increase in homes for sale. The nationwide emphasis on social distancing has dramatically reduced visitors to these areas. Property owners who rely on income from a vacation rental have taken a hit, and many may look to unload their asset sooner rather than later. A growing number of foreclosures could also hit the market in the coming months.
Homebuyers with substantial financial resources interested in a second home primarily for their personal use rather than a rental property may find an increased number of options during their search.
With a complete return to pre-pandemic activities likely on hold until a vaccine or more effective treatments are widely available, a vacation home may provide even more value for those already convinced of their utility.
In a world where working remotely is widely accepted and even encouraged, the opportunities to spend time at a second home can rise exponentially. Depending on its proximity to loved ones, it may also support social interactions without risking a stay in a hotel or relying on them opening their home to you.
And, a recovery of the tourism industry will eventually occur. If a residual focus on social distancing remains, it could place a premium on private rentals and make your second home a viable and valuable revenue source in the not-so-distant future.
Open Mortgage offers the latest in lender technology to keep your home search safe and secure. Visit OpenMortgage.com to discover how our experts can help simplify your path to a perfect home.