Unsurprisingly, due to the pandemic and the economic downturn, the real estate market has seen a slowdown in sales over the past few months. However, as an investor or someone who wants to buy or sell a home right now, you would be more concerned with mortgage rates and pricing instead of changes in sales numbers.
One of the main reasons why investors like to “park” money in real estate is because it is resilient in times of turmoil and more dependable than the stock market that can crash within a few hours of an international incident. The current state of the economy and its lack of an effect on real estate prices is the perfect example of this. Realistically speaking real estate prices are less defined by economic turmoil (unless it is directly related to real estate) and more by the laws of supply and demand. For example, if there are many homes in the market, ready to be sold, and not enough buyers to buy them then prices will begin to drop as sellers begin to reduce their asking price in order to make the sale.
During the coronavirus pandemic and the social distancing that is has caused, the number of sellers and buyers have both, understandably, lowered and this has kept the prices stable. Once the pandemic subsides and things go back to relatively normal it is tough to predict if prices will remain stable or if they will decrease. There will most likely be many sellers in the market, specifically seller in need of cash to deal with the ramifications of the economic downturn and the pandemic. However, it is harder to predict if there will be a relatively equal number of buyers since potential buyers may also be low on funds. Therefore, real estate investors or investors in general play such an important role in the economy. They help stabilize markets, keep prices stable and keep a balance between the supply and the demand in the market. We don’t know how aggressively investors will want to buy real estate once things calm down, however, the continued decrease in mortgage rates is a good indication that the investors who can invest, will invest.
Either way right now is the time to speak to an agent (www.aminvali.com), learn about your options, begin planning, and lock down a mortgage rate (while they are at their lowest) by getting pre-approved. Since mortgage rates have hit a record low, serious buyers and investors are doing exactly that. Real estate agents and real estate investment groups (Amin Vali Consulting Group) can further assess your own finances and help you come up with an investment plan and the right time to invest.
If you invest in the right location/market with a strong rental market, even if prices drop in a few months, they will almost definitely bounce back and increase as the market eventually hits another uptick. An agent with experience in investment properties can give you more information (www.aminvali.com).
Civil Engineer, MBA, Real Estate Agent, Multi-Unit Construction Project Manager in California,
USA Phone : +1(310)925-3878
Web : www.aminvali.com
E-mail : firstname.lastname@example.org
Realtor in Zutila Inc.