The frequently asked question today in the real estate industry, what will happen in the future? At present, the market is still moving. Real estate business still has a pent-up demand, considering there are very low interest rates. As a consequence of the new pandemic scenario, the conditions are evident on the economic side: major industry collapses, decreased customer demand, reduction of gross domestic product (GDP), reduced income, less workers, reduced wages. Speaking from that point of view, the world never seemed so grim.
For the next several months, below are the following forecasts: the housing sector is rising fairly gradually yet always stable, since other causes, such as liquidity in the bond market, presidential elections are coming up, and the forbearance attributable to the CARES Act. Many of the unemployed after 6-month forbearance are more likely to sell their homes by October. There is continuing to be a spike in inventory. Business is growing, but prices are beginning to decline. As a way to take advantage of this information, realtors should start seeking inspired sellers and investor sellers (purchasing low, then selling high) start selling now keep on to the capital and wait until after-forbearance. It seems to be easier to get more buyers. However, sooner or later sellers would again turn up — those who are downsizing. Lead the way by placing the property vigorously in the listings.
The quicker it sells, the higher the quality the buyers receive. And when the market is in a potential decline, it is more important to be very strong in pricing and to explain the forecast. The Next 6 Months After the forbearance, people are re-defining how they wanted to live. Some opted for more backyard space since they have relocated away from the city. Some would have re-modeled their residences to fit with the new normal, which is working-from-home. Home builders may benefit to this shift in consumer preference. Realtors may also look at this opportunity to re-brand and use technological advances to their favor in marketing properties for theses prospective clients. However, with the social unrest and the current events in the US, it will directly affect or contribute to the economic impact. And anything that affects the economy directly affects the people’s income. And with an affected income, consumers will tend to change their behaviors toward purchasing and it will then become a cycle of unending unaccustomedness which is not suitable for business.
A Year After With the CARES Act providing the consumer with an option to re-apply and extend forbearance with mortgage payments, this will not sit well with the business and economic. With the forecasted influx of properties due to the previous forbearance, another wave of similar-state properties will be flooding the market. This is definitely performing to be a very unfortunate slam, especially for the real estate industry wherein inventories are high, making the costs low. Thus, making the property unprofitable. These forecasts are based on the current situation, should it worsen. “As optimistic as it sounds, post-pandemic will be a time of changes and adapting to these changes, may it be for the more harmful or the better. Hopefully, the latter.” –Gebah Kamara