Rent and foreclosure moratorium will end on June 30th. There would be a lot of eviction on tenants and foreclosures on properties.
We try to buy a property and wonder whether we should go under contract now or wait till this moratorium ends and to market to settle to get a better price.
We are new to the real estate and any advice from member is greatly appreciated.
It may be extended AGAIN
And prices will probably skyrocket after the eviction moratorium ends. Prices have been depressed as nobody wants to buy a property with tenants they didn’t screen and they can’t evict. I think the best deals would be any properties with non-paying tenants right before the moratorium ends. Once it’s over those properties might increase 10-20% overnight. Maybe more.
@Bill Brandt would not there be a chance for the prices to come down when there will be more house in the market?
The landlord doesn’t have to sell after they can finally evict. They have to fix it up to sell or re-rent.
He only increase I could see is forbearance of mortgages ending. And the number in forbearance has been declining monthly. The problem is they won’t be foreclosed, they’ll just be sold as they’ll all have equity. Then what? They move in to rentals so rental inventory goes down? This is the first time I’ve seen rent increases come close to home price increases. Too many city governments hate landlords and are willing to punish the poor and middle class renter to prove it
When a “balanced market” is 180 day supply and we’re at 10-20 day supply. if 2 or 3 times all the homes currently on the market suddenly came on the market I think you’d be lucky to slow the price increases. We’d still be well inside a seller’s market.
Someday higher interest rates will start to slow home price increases but only because payments on those lower prices will still be higher than they were on the higher prices. People will hit their payment limit instead of their price limit.
I did have a second thought after posting…you MIGHT get a mass migration of people who only stayed in places they hated (New York, Chicago, Portland, name your place.) because they were living rent free. They might take all their saved rent payments and move to Florida, Texas, Tennessee, Nevada, Arizona. It could be an echo of all the people who moved during the pandemic.
@Bill Brandt That totally makes sense. Thank you for explaining it...
@Shehan Omantha this got pushed back yet another month, so I doubt this year's market is really going to change based on this ending. I am a big fan of buying deals that make sense when they come. Don't try to time the market, or you will spend all your time on the sidelines.
People have been waiting on the sidelines for many years waiting for prices to come down. They’ve gone up, and it looks like they’ll be up for the foreseeable future.
There will likely be a slight increase in foreclosures, nothing market changing, and they take a while so the effect wouldn’t be felt for at least a year anyway.
The late 2000s crash was a once in a lifetime event, not an investing strategy. Anyone waiting around for it to happen again should keep their day job.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you