In June the country began to open back up, with many companies and organizations reopening with CDC guidelines in place and practices to follow social distancing guidelines. Millions of people were able to go back to work.
What does this mean for the real estate market? Millions of people earning income again, millions of people who may or may not have had plans to buy a home before the pandemic are now once again financially able and doubly motivated due to the record low mortgage rates. Not to mention the millions who have the option to refinance or upgrade their current home.
Even if unemployment rates hadn’t gone down, the majority of white-collar workers in the country are not affected (financially) by the pandemic. Many will have even saved money on gas and other expenses due to the work-from-home orders and the lack of available social activities. These individuals are now primed for homeownership.
Real estate agents and realtors (www.aminvali.come) are reporting increased activity in the real estate market. Mortgage applications have increased by 18% in June 2020 (compared to June 2019) and will probably keep going up as home buyer and investor confidence continues to increase. However, relative to last year, there are 27% fewer homes available to buy now, this will lead to price increases, bidding-wars and cash offers. Potential homeowners could be reasonably worried about this; however, real estate investors still have great opportunities in front of them for investing in commercial properties and multi-family properties.
Summer is the most popular season for buying and selling homes and investor activity increases as well. In more basic terms all of this means that the housing market is hot and will continue to get hotter which means more expensive.
The future of the record low mortgage rates is unknown, so is the future of the timeframe of the pandemic. However, the most tangible fact in all of this is that, right now, buyers have increased noticeably and supply has decreased drastically which WILL lead to a surge in prices which means those who buy or invest now are primed to make a profit.
Civil Engineer, MBA, Real Estate Agent
Cell phone: +1 (949)220-1000
Phone : +1(310)925-3878
Web : www.aminvali.com
E-mail : email@example.com
Realtor in Zutila Inc.