Home Buying, COVID 19 and Economy (Boston, Essex: real estate, rent, mortgage)

[Simi.me]

Hello All,

We have been in the market to purchase a home in Essex and Middlesex areas for the last few months(500-600K range). The inventory has been low (& we started getting picky). We were hoping the spring market will increase our options. The last few weeks have taken a quick turn with increase in COVID 19 cases. For the first time in several weeks we did not go to any open houses the past weekend (I am surprised they are still hosting open houses). Adding to this is all the evidence of a recession coming up. Both mine and my husband's jobs are fairly stable (or we would like to think so). We were planning to buy well within our comfort level and do have reserve. The interest rates are still low but that might not be the case in the coming months, right?

Experts here or other potential home buyers here: How has the recent situation impacted your home buying decision? Would you move forward or put things on hold? What are things that could go wrong if we buy now and a recession hits?

[wolfgang239]

I'm in the same boat, same price range same situation. No plans to change course, recession doesn't necessarily mean housing will drop but it is definitely more of a gamble than when I posted the 2020 Real Estate Observations thread.

[id77]

Similar boat, but different price range and location. We're not going to stop looking at buying another home because of this, but I am a little concerned this is going to make things like open houses a lot more interesting for the next few months.

[mwj119]

Originally Posted by Simi.me

Hello All,

We have been in the market to purchase a home in Essex and Middlesex areas for the last few months(500-600K range). The inventory has been low (& we started getting picky). We were hoping the spring market will increase our options. The last few weeks have taken a quick turn with increase in COVID 19 cases. For the first time in several weeks we did not go to any open houses the past weekend (I am surprised they are still hosting open houses). Adding to this is all the evidence of a recession coming up. Both mine and my husband's jobs are fairly stable (or we would like to think so). We were planning to buy well within our comfort level and do have reserve. The interest rates are still low but that might not be the case in the coming months, right?

Experts here or other potential home buyers here: How has the recent situation impacted your home buying decision? Would you move forward or put things on hold? What are things that could go wrong if we buy now and a recession hits?

At your desired price range, and with mortgage rates where they sit, I wouldn't worry about purchasing now. Get that rate locked via your lender of choice and find the right house.

We are in/heading towards a recession, and I do expect the housing market to take a slight hit, but you won't feel the same "pain" as those who purchased the $800k-$1M+ homes over the last few years. $500-$600 will be entry level in many of the communities in both Essex and Middlesex.

Nobody knows when the housing market and values will truly dip. Could be in four months, could be in eighteen months. If you plan on staying in that house for 5 years, I wouldn't think twice.

EDIT: I would think, despite a dip in demand/prices looming, that the trends will continue. That is, a reasonable house in close/walking proximity to a town center/core and public transportation. The appetite for that house will only continue, so if you are weary, maybe make that a priority more now?

[Bridge781]

We have an offer accepted on a house. We need to get our house on the market now and sell it. We are in the city of Boston. Our agent thinks she’ll have our house sold quickly but we’ll see...

[mdovell]

The rates are fine I see no reason to really worry about race at this time. But I wouldn't be in the market of really buying a house in or around the Boston area for at least 6 months. The reason I say this is that you need to see if the students are actually trying to come back. The evacuation of Academia is significant and without that aggregate demand for additional rent it's going to be harder to justify housing prices.

Remember students were not kick out of the school they're only kicked out of the school campus. It's a hard argument that they're going to move out move back in in May and then move back out again in July and then back in again in September. This all cost a significant amount of money. as I mentioned earlier student visas are not work visas and if they leave there are visas that frankly are going to expire in 6 months so the timing couldn't be any worse.

now if you're already an owner I think this would be a great time to start to think about home improvements. With all the contractors in Boston looking for work, low interest rates, low gas prices and green tax credits this is the time to think about updates and upgrades. Boilers, windows, weather stripping, solar etc

[bugelrex]

From last recession i believe home prices didnt show noticeable declines until many several months (12 months?)

Same should be here, sellers will not be forcrd until mortgage payments are at risk. In good school districts, selling and forcing kids to another location is usual an absolute last resort (renting would not likely to be cheaper than mortgage unless you only purchased in the past 4 years)

[bugelrex]

Originally Posted by mdovell

.

now if you're already an owner I think this would be a great time to start to think about home improvements. With all the contractors in Boston looking for work, low interest rates, low gas prices and green tax credits this is the time to think about updates and upgrades. Boilers, windows, weather stripping, solar etc

Was thinking the same thing but it negates the "shelter in place" as now you have absolute strangers into your home. May look at landscape projects and rent a porta potty for them

[matrix5k]

We considered removing trees, solar, and landscaping last year but it was so expensive. If prices come down significantly then we'll certainly do it.

[r_p]

Originally Posted by Simi.me

Hello All,

We have been in the market to purchase a home in Essex and Middlesex areas for the last few months(500-600K range). The inventory has been low (& we started getting picky). We were hoping the spring market will increase our options. The last few weeks have taken a quick turn with increase in COVID 19 cases. For the first time in several weeks we did not go to any open houses the past weekend (I am surprised they are still hosting open houses). Adding to this is all the evidence of a recession coming up. Both mine and my husband's jobs are fairly stable (or we would like to think so). We were planning to buy well within our comfort level and do have reserve. The interest rates are still low but that might not be the case in the coming months, right?

Experts here or other potential home buyers here: How has the recent situation impacted your home buying decision? Would you move forward or put things on hold? What are things that could go wrong if we buy now and a recession hits?

We are already in a recession. Good time to invest in securities rather than spending on a large downpayment