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How COVID-19 is Changing the Real Estate Market

Goose Creek Property Manager Wearing a Mask to Protect Against COVID19The coronavirus outbreak has definitely shaken our lives. Everything is going through a temporary or even a permanent change. This means that the world is less certain of what the future holds. Knowing this, Goose Creek rental property owners wonder how COVID-19 will impact the real estate market.

Current economic indicators seem to say that changes are on the way. But there’s no need to fret as not all changes are bad. Market data shows that home prices are still rising, albeit very slowly. Growth in the first part of 2020 was less than 1% but it’s been showing an upward trend since then. Slower home price growth may be good news if you are ready to buy another rental property but may slow the appreciation of your property values on existing properties. The real estate market continues to thrive in these extraordinary circumstances as evidenced by the continually growing home prices.

Property owners certainly don’t want another housing market crash like the one in 2008. With today’s high unemployment rates, it seems like foreclosures are unavoidable as people stop paying their mortgages. But a real estate market crash does not seem like a big possibility. Instead, most agree that property equity is likely to decrease as buyers nationwide continue to show interest in both existing and new homes.

The multiple reductions in the mortgage interest rate are yet an additional unexpected change this year. To prevent a housing market crash, the Federal Reserve has slashed mortgage interest rates to historic lows. For Goose Creek rental property owners, these low rates mean more opportunities. These can range from refinancing existing loans to lowering your monthly payment to borrowing for your next property at very favorable rates. These low rates have caused a lot of people to secure financing. Lenders are swamped by the demand and are tightening their lending criteria. High demand has also caused longer turnaround times in the purchase process from inspections to appraisals. But if you are patient and have a lender on board, you could still enjoy the current rates.

It is important to do this because even when experts do not expect a housing market crash, another recession is almost certain. The stimulus funds from the federal government are just a temporary solution. With the coronavirus outbreak trajectory still unknown, industry experts can’t really tell how COVID-19 will impact the real estate market next year especially if conditions worsen. Many real estate professionals are adapting to pandemic conditions by using digital technologies in new ways. With virtual sales, online property tours, and Zoom consultations in their arsenal, real estate brokers, mortgage lenders, and property managers are using new tools to keep the market moving forward.

These new tools are the new normal of the real estate market. These will make real estate investing more efficient and full of energy. For Goose Creek rental property investors, it is important to be on the lookout for opportunities to streamline and modernize both your investing and your property management process. Contact us today for help on how to do so, so you successfully make it through whatever the future may bring.

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