How Covid-19 is Affecting Home Construction

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The COVID-19 pandemic hit almost all industries. In the real estate industry, market prices became shaky as sales were delayed and constructions were temporarily halted. The demand for existing homes exceeded the supply as the delays came in, workers lost their jobs, and people’s budgets for home purchases were greatly affected. 

The forecast, however, is that new home constructions will be faring much better as the workforce begins to bounce back, and demands for homes slowly rise. However, due to the restrictions on physical distancing, work is negatively affected as this slows down construction. 

As the market struggles to recover, mortgage rates are low, causing more people to apply for refinancing or new home loans. Lenders, however, are wary of giving out new construction loans because of the unemployment. They find it more difficult to grant loans as they want to guarantee that the borrowers are employed by the time the loan is granted in order to ensure the ability to pay it back. 

Now that the world slowly shifts to “the new normal,” physical distancing has become a must and a definite need for larger spaces has risen. With work-from-home also on the rise, the need for an office space became a factor as well. This means that people will go for home expansions or go for a completely new house to take advantage of the low mortgage and refinancing rates so they can take on new home construction loans. 

However, with further restrictions on imports and exports, supplies for construction materials are also dramatically affected and this slows down construction projects and completions. This will result in further delays in sales, causing market prices to dip lower, but each state is hopeful that they can bounce back sooner as the demands also increase. 

For those who want to take advantage of the low rates and can afford to ride out the delays and difficulties, this might be the perfect time to apply for new home construction loans, whether for expansion or to build from the ground up. Blake Mortgage is one of the best options for such loans as they offer a Single Close or All in One Construction Loan that is not broken down into phases of completion, but rather just paying at the beginning and end of the period. With this loan, a borrower is assured that the rates will not change during the entire construction period, and this is indeed good news as the market rates are low and construction progress is slow. With some jobs not affected by lay-offs and dismissals, people are still able to keep their salaries and resources, enabling them to pay off loans. Visit the website to learn more.

With COVID-19 showing no signs of being eradicated quickly, it can be deemed wise to take advantage of certain market lows and prepare for the inevitable “new normal” becoming the actual norm while the resources and the time is available. Building a new home or expanding a current one will become a necessity as families continue to find ways to protect themselves and practice social responsibility by also protecting those around them.