Do we need help figuring it all out?

With the pandemic continuing to affect the economy, and millions filing for unemployment, talks about a second stimulus check are in play and it is likely to happen. The increased unemployment benefit program is ending this month and there is generally a lot of uncertainty with the economy and the coronavirus.

What does this mean for the real estate market? It means many things and, in some ways, many conflicting things, depending on what side of the coin you are on.

A second stimulus check could put potential home buyers, who are now extra motivated since the mortgage rates have dropped yet again, on a better footing for their down payment on their loan ( There already is a buying frenzy among those who have not lost their jobs or business during the pandemic.

With a reduction to the $600 a week unemployment benefit, many of us who have relied on this money to stay afloat, to pay rent, to pay our mortgage etc. this will be a difficult change. This may lead to a temporary increase on the supply side of the real estate industry, since during an economic crisis many people are forced to sell their homes out of financial necessity.

If current homeowners suffer yet another financial loss, they may be motivated to sell their home. Homes and properties available to buy are limited, however, there are still homes being sold, for now. However, if the mortgage rates continue to drop and buyers continue to get more and more motivated.

The good thing about this is that supply will still be lower than demand, and the lowered mortgage rates allows for buyers to bid higher for the home of their choosing. This will at least allow sellers to create a buzz and a bidding war for their property and walk away with more money.

The bad news for home buyers is that the bidding wars and price increases will only get worse, which means acting now may lead to a much lower price.

Investors have the upper hand in some ways and they might be feeling pressure otherwise. An investor with a property to sell is in the perfect position to reap the rewards of the investment they previously made. Investors who as a rule want to buy low and sell high are under pressure since the supply and demand imbalance and low mortgage rates has guaranteed price increases.

Investors and real estate investment groups (Amin Vali Consulting Group) may have deeper pockets than the average first time home buyer but it doesn’t mean they want to buy a property for more than it’s seemed ROI. However, depending on the location and the property in question, potential benefits could heavily outweigh the upfront cost of buying during an uptick in demand and subsequent prices.

This may sound like it’s confusing, however, a simple conversation with a real estate agent or realtor will allow for clarity and options ( 

Amin Vali 

Civil Engineer, MBA, Real Estate Agent

Cell phone: +1 (949)220-1000

Phone : +1(310)925-3878 

Web : 


E-mail : 



Facebook:amin vali

Realtor in Zutila Inc.


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