With mortgage rates hitting records lows, many people are assuming that housing prices have also had a dramatic change or that they will have a dramatic change due to the pandemic and the economic downturn.
Over the past few years housing prices have been on a steady increase year after year. This bodes well for investors who own property and homeowners with fixed mortgage rates. However, with the uncertainty that we have going on right now there is a lot of assumption, a lot of speculation. Luckily the housing market doesn’t take a huge dip in prices overnight. When there is a major crisis or international event that causes uncertainty and speculation, the stock market is so quick to take a dip and cause upheaval. The real estate market is not sure volatile and fast acting. This means property prices will not jump up as quickly and give you an instant profit and they wont plummet as quickly and completely wipe you out.
Due to social distancing and economic uncertainty the real estate market is somewhat frozen due to a significant decrease in activity. However, the minimal amount of activity is still happening is allowing prices to stay the same or increase at a very minimal rate. The pandemic is slowly coming to an end and things are going to slowly get better as companies are reopening or slowly going back to “normal” productivity levels. This is a potential sign that real estate prices will continue to increase, at different rates depending on how the things progress with COVID-19, however, most investors are still looking to buy since mortgage rates are so low and it looks like prices will continue to increase.
The time to get a low mortgage rate and lock it in is right now. The chances of rates dropping this much ever again is quite low. The current crisis is not related to the real estate market and several industries are thriving during this pandemic there is money to be spent and activity to be had. Real estate agents (www.aminvali.com) are seeing an uptick in activity and real estate consulting groups (including Amin Vali Consulting) are able to give home/property owners information about taking advantage of low mortgage rates. Talking to an agent now can give home/property buyers a significant edge since the number of buyers is relatively lower so there is less competition.
Investors are primed to see massive profits over the next few years. The likelihood that prices will continue to go up and the rate of increase will be higher once the pandemic is over and even more when we are back in a boom economy. The record low mortgage rates also play a significant role in increased equity since lower interest rate payments lead to a “faster” payoff for the mortgage loan.
What does this mean for you? It is a chance to invest at the most opportune time (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
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Realtor in Zutila Inc.