What moves should you be making in terms of buying or selling real estate during and after the coronavirus pandemic? We’re living in unprecedented times with the global coronavirus
Your Guide to Real Estate Opportunities in a Downturn Economy
Dated: June 22 2020
What moves should you be making in terms of buying or selling real estate during and after the coronavirus pandemic?
We’re living in unprecedented times with the global coronavirus pandemic, also known as COVID-19, bringing nearly all nations to a complete halt. Non-essential businesses, daycares, and schools were shut down and employees were sent home - meaning the financial systems around the world took a major hit. In the simplest terms, the world has severely limited economic activity in an effort to ensure social distancing, and in turn, limit the spread of the virus. This means we’re in a different type of downturn economy than what normally happens in a recession.
How does this relate to buying or selling real estate?
During times of uncertainty, your investment strategies almost always need to be adjusted. Naturally, experts predict the economy is headed for a recession, but that doesn’t mean taking a break from investment decisions. Instead, it means you need to adjust your strategy. Things will return to normal, and if you make the right real estate moves now, you’ll be prepared to enjoy your efforts as we shift back to normal.
So what opportunities are available to you and how can you take advantage of them? Here’s our recommendations:
- Home listings are down = ideal time to sell!
Hampton Roads Realtors Association stated that home listings in the area went down approximately 21% in March 2020 compared to March 2019. They explained that homeowners are likely holding off on listing due to fear of losing their income. For those in stable positions, it’s an ideal time to sell as there’s less competition on the market.
- Interest rates are low = ideal time to buy!
If you’ve been keeping an eye on the market, you’ve likely noticed that interest rates are at an all-time low. This is an attempt to stimulate the economy, and for some, a great opportunity to invest in real estate. Those in stable positions and looking for a new home are in an ideal position to buy.
- The economy is down = ideal time to look at unconventional real estate!
While many investors tend to embrace a strong economy with loose capital markets, there are various real estate assets that can do well in a less predictable market. This includes self-storage facilities, mobile home parks, and shopping centers with a central grocery store. They can thrive in this challenging time.
A look at the merits of making real estate investments right now…
As the economy falls into a down, uncertain state, many will steer clear of investments. But as mentioned, it’s all about restrategizing. There are various reasons to make a move:
● Some property investments, such as those that are thriving like mobile home parks and self storage facilities, can deliver a stable income.
● Real estate can be less sensitive to volatility, especially in a recession resulting from lockdowns as opposed to a crash.
Our advice? If you’re in a stable position to do so, it’s a great time to make some smart real estate moves. You may even consider selling a property, then reinvesting some of your earnings into a recession-resistant asset. There are opportunities out there. We can help you assess them.
Whether you’re looking to buy or sell a home in Virginia Beach, VA, give us a call at 757-350-1149 or send us an email at firstname.lastname@example.org to start planning your next move now! I’m here to answer any questions you may have about your real estate goals during the coronavirus pandemic.
Joshua Britt is a dedicated agent with Prodigy Realty. Starting his business graduating with a Bachelor's degree in Marketing and a Master's degree in Business Administration, all while serving in the....
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