Pandemic Effects on Homebuying

Unemployed or laid off by the COVID-19 pandemic, thousands of prospective homebuyers are now struggling to make ends meet.

For most of those who are eligible, unemployment compensation is seemingly unattainable, with applications overwhelming the state web sites and a serious lack of trained personnel available to process applications, these outdated, archaic systems have failed.

Being victims of a failed system that has misled hard working folks and left most with no available financial assistance, unemployed breadwinners have no choice but to turn to their savings, including emergency savings and any savings they may have for down payments in order to provide for themselves and their families. 

It's a blessing if they have a cushion for a crisis like this one. 

Relying on emergency savings may be the only way to manage through this crisis.  The reality that many Americans face however, is that they simply don’t have enough savings set aside for that purpose. Keep in mind that the recommended minimum amount of emergency savings should equal to three months of net income per household. That makes it considerably harder for individuals and families to avoid borrowing to cover necessary expenses.

When lives return to normal, these would be first-time buyers will need to start over, to restore their credit, their savings and any homeownership dreams. By that time, the markets will need to figure out how to restore more affordability to markets across the nation.