Dive Deep into Real Estate Investments During the Pandemic

Real Estate Investments During the Pandemic

The COVID-19 pandemic has made us all more familiar with our homes, especially with all of the social distancing norms that have been put in place. It has thrown a lot of questions when it comes to the future of the property market. In this article, we are going to dig into real estate investments during the pandemic. Let’s get started!

Now, while the global economy has been thrown under a bus during the early days of the outbreak, the property market, has been able to remain resilient. As of April 2020, the median United States house price rose 8% to get to $280,600.

Real Estate Market Trends

This is really good news for all who made real estate investments. It shows that as of right now, the real estate market is still continuing to rank as the top investment pick for the majority of Americans. But 35% of which, is ahead of stocks and bonds, savings accounts, and gold. However, it should also be noted that the coronavirus pandemic has led to construction sites all across the globe shuttering, which adds to existing supply shortages.

Now while it is very much true that buying a home is considered as one of the most important financial investments, during times of economic distress, that statement can be questioned as a doubt. The financial crisis of 2008, which happened to originate in the property market, was a huge knock on the confidence of all real estate investors. However, this time financial experts and analysts broadly agree in the community that a particular downturn will not hurt housing. Dhruv Arora who is the CEO of the digital wealth manager known as Syfe. He said that earlier, the property market has seemed to be either flexible or struck across certain real estate sectors.

Short-Term Difficulties

Notwithstanding all the short-term difficulties of conducting viewings which are in-person means, it is a perfectly reasonable time to think about buying a home, i.e. after cities and states reopen. Right now, in a bid to stimulate the global economies, interest rates have been cut. It has led to the cost of borrowing to become cheaper. This also has the potential to make mortgages more affordable as well, but considering you have adequate finances.

Trent Wilshire is an economist at Domain the Australian property site. He has said that these favorable conditions could also happen to encourage more people. Those people get back out into the market as soon as things get back to normal. He added that it is already starting to happen in Australia, wherein the lockdown measures are slowly being removed. Transactions will start to rise once again in the coming weeks. But it will still be slow when compared to late 2019 and early 2020.

This brings us to the end of our discussion on real estate investments in the pandemic. Now, do let us know some of your personal thoughts on the same.