The COVID-19 pandemic has sent quite the ripple effect throughout the world in ways that are in a lot of ways unprecedented. Every industry has felt it, and the real estate industry is among the hardest hit.
So what are some housing market predictions 2020 has in store?
Housing Market Predictions 2020: Is Now a Good Time to Buy a House?
Even though COVID-19 has been a beast, put your mind at ease. Yes, right now is a good time for you to begin looking around at some housing options as we try to make sense of things.
Here are some trends that will likely shape the rest of the year:
1. Sellers Will Respond Well to Serious Buyers
After the fallout of the pandemic, the biggest shockwave involved the record number of people out of work. Unemployment rates were sky high, to the point that the government issued a stimulus and several payouts.
As such, you can expect real estate sellers are looking for people who can afford the properties that they’re listing.
When real estate agents gauge that you’re serious and prepared to move forward with a purchase, you will absolutely be taken seriously in a post-coronavirus world. Get your ducks in a row and have your finances in order when you’re preparing an offer.
2. Now is the Best Time to Purchase an Investment Property
The lull in activity during shutdowns and stay at home orders gave investors enough of an opening to prepare for eventual re-openings. Now that states are beginning to open up little by little, you’ll begin opening yourself up to an eager pool of buyers and renters.
People who have been starved of travel opportunities will be out in full force in the coming months. As such, they’ll waste no time booking Airbnbs all over the country. If you happen to snag a hot property in a tourist attraction city, there is plenty of long-term potential there.
3. Mortgage Rates are at an All-Time Low
The rates of mortgages recently fell to a little more than 3 percent, which is an all-time low in the industry.
If you’re interested in a 30-year deal, now would be a great time to get in at amazing rates. This saves you money over the long-term and will let you make fiscally responsible purchases.
Financial institutions that make lending decisions may be more likely to work with you since the pool of borrowers has thinned out with so many people still out of work and going through other hardships.
4. You Can Find Lots of Great Deals if You’re Flexible
The mistake that most people make is that they only hone in on the trendy or popular neighborhoods. For instance, people looking to buy property in Philly might look in areas like Old City, Fishtown, Bella Vista, and Rittenhouse Square.
While these neighborhoods are great, there are so many spots all over town that you look for that will give you great prices.
5. We May Be Nearing a Buyer’s Market
Right now, plenty in the real estate industry are taking a wait and see approach to the way that things shake out. With that said, it is very likely that the market will turn around in the buyer’s favor.
Sellers and realtors will be in an eager position to close deals, so buyers will have a bit more negotiation power.
6. You May Be Able to Find Some Multi-Tenant Properties
One of the biggest factors of the pandemic is the fact that several tenants were not able to pay their rent. What this means is that several landlords have also not been able to pay for their buildings.
This could provide a sweet opportunity for an investor that is looking to really score big. If you have the patience for circumstances to right themselves, you’ll be able to get a multi-tenant building at a much better rate.
7. Technology is on Your Side When Shopping Around
It is also a great time to buy because technology is on your side. Several property owners and realtors are doing virtual tours and making use of things like video chatting to close deals.
With real estate, big data will be a huge part of the process moving forward. You can look into data mapping and aerial footage that will help you to learn more about a property without even having to show up in person.
8. New Measures Might Slow or Thin Out Some Crowds
Finally, you also need to account for the fact that new standards related to COVID-19 are here to stay. This means that people will have to be more diligent about scheduling appointments and will have to wear masks and adhere to social distancing requirements.
Not everyone will have the patience for these measures, so you might be able to swoop in and find a deal while others weren’t willing. When there’s less competition you’ll be better able to land the real estate property of your dreams.
Shop Around For Whatever Home Works For You
These housing market predictions 2020 are useful if you’re thinking about taking the plunge and buying a property. While COVID-19 has had life-changing effects on society, right now is still a great time to buy a new property.
Believe it or not, now is as good a time as any to explore the real estate market. We’re not out of the woods yet with the pandemic, but there are truly some positive effects you can capitalize on.
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