How COVID is Creating Shifts in Real Estate- Last week we listed some ways the real estate market could look different due to the COVID-19 pandemic. This week we are continuing to look at a few more ways the real estate market could and probably will shift as it is impacted by a worldwide crisis, not just in the Parkland, Coral Springs and Boca Raton area.
Here are some more ways that COVId-19 could impact the real estate market (for part one click here):
Being asked to stay at home for 90% of your time can and will cause some people to make changes in their family dynamic. Unfortunately, some couples may realize that their relationship is no longer strong and healthy. After the stay at home orders are lifted they may seek separation or divorce and this will change living arrangements, it could cause homes to go up for sale.
On the other side, it may cause couples to realize they want to tie the knot and never be far from each other creating demand in home buying. Then there is the subject of many memes, having children or COVID baby boom, this can create the need to upsize a home which will create selling and buying opportunities.
A Surge in Rental Demand
While there are currently eviction freezes and loan forbearances on many homes, those eventually will lift. Some Americans will find themselves needing to find more affordable housing to help make ends meet in the “new normal.” This is going to create a surge in people looking for rental properties including homes and apartments. Predictions expect rental demand to be high for a significant amount of time. This could be a great time to begin investing in rental homes if you have always wanted to or to invest in more properties if you are able.
Increased Investor Activity
With other markets being less stable, and a rise in foreclosures post-pandemic, investors will be looking to shift their interests and investment activity to places that seem more stable. Not only will there be a rise in investors shifting from the stock market and other places to real estate, but we will also see an increase in current real estate investors padding their portfolios (as stated above).
How Can You Prepare for These Changes?
Don’t wait. Don’t wait until the pandemic is over to talk about your housing options. Seek out the advice of real estate professionals now and get ahead of the curve. No matter what your current real estate situation, if you have been wondering about making changes or thinking that you will need to, it is good to be proactive. Ask how you might make changes when they are small before they get big or how you can better prepare to make big changes soon. Great people to ask your real estate questions to our experienced and trusted real estate agents, mortgage brokers, and financial counselors, or even an accountant. If you have questions don’t be afraid to seek out knowledgeable advice.
Additional: Zero Contact Mortgages are a Thing!