Lower Interest Rates Make Owning As Inexpensive As Renting, Says Bryan Nazor
The economic downturn has left many individuals without jobs, especially those in the hospitality, recreation, and retail sector. Because people in these sectors are more likely to rent, real estate investors now see the market as too risky and are pulling out. At the same time, low-interest rates and less competition are driving down prices for first-time buyers. First-time buyers now make up 36 percent of the share of overall homebuyers, up from 32 percent, according to a National Association of Realtors Survey.
“For many people, the monthly payment for buying their home is about the same as their rent. Given all the benefits of homeownership, first-time buyers are entering the market,” says Bryan Nazor. Some signs are that the demand from other groups is beginning to re-awaken, which will create more competition for houses. This increased competition will raise prices again. “Those who can afford to buy now can still get good deals,” says Bryan Nazor. Programs exist to help first-time buyers, which are defined as those who have had no ownership interest in a home in the past three years, to be able to purchase with small down payments, Bryan Nazor says.
Another housing trend is the decline in sales in high-density areas such as cities and condominium developments. Condominium sales fell 26 percent from the previous month. Sales in urban areas also fell by about 7 percent from two months before. “Millennials are beginning to start families and need more space, so they are moving to the suburbs,” says Bryan Nazor. “The fear of contracting COVID-19 may be hastening the trend.”
Virtual tours also are on the rise. Few people have bought a home through only a virtual tour, but people are using them as a way to narrow down their selections so that they go on fewer in-person tours, says Bryan Nazor. Virtual tours, especially 3D tours, will likely continue to be one way in which prospective buyers tour homes because the tours can be done at any time from the privacy of the buyers’ own home or office, Bryan Nazor says.
Bryan Nazor is president and chief operating officer of Main Street Title & Settlement Services, LLC, in Hackensack, NJ. He received his bachelor’s at Fairleigh Dickenson University and his law degree with distinction from New York University Law School. Bryan Nazor is a member of the bar in both New Jersey and New York.
Bryan Nazor was previously a professional soccer player, playing for teams in Latin America, Europe, and South America.