Real Estate in the Time of Quarantine

It’s an interesting time to be alive. It’s been over 100 years since there’s been a pandemic so most of us have no concept of how to live during this time. Just like most things in today’s society, it’s quite polarizing and for most people to the extremes. So how does this effect Real Estate. Let’s dive in and see.

First, this will one hundred percent have an effect on real estate. With unemployment rates at record highs and job uncertainty throughout the country and across all industries, there will be an effect on real estate. One thing to note is the real estate market was primed for an adjustment potentially in the fall on 2020 after 10 years of home value increases. The pandemic seemed to have sped up that process and will definitely cause a harsher drop in values and buyers interest. That being the case, I believe once this pandemic is over and not only the United States but the world works to rebuild, we will have a quicker recovery and stabilization of home values.

What is Real Estate? Its shelter and everyone needs a place to live. I’ve seen an increase in programs to support tenants out of work and programs to support small businesses. Yes, that first round of money ran out quickly, but the government is planning several more relief packages to assist during this time and with a recovery from the pandemic.

I know many real estate investors that have succeeded in acquiring SBA loans to tide them over. Additionally, many are biding their time and building up liquidity to start buying when the dust settles. It’s near impossible to know when the bottom of the market hits, but many of us are good at gaging the trends. Start watching the days on market when the economy kicks back in. See if they are getting longer (slowing market and dropping prices) or getting shorter (increasing market).

In summary, there will be deals out there. Make sure you’re using this time to develop a plan for capitalizing. Investors that know how to work a market when it’s down will always come out on top. Get to work, get your finances in order and be ready to dive in.

Best of Success, Andrea

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