Should you be making the biggest investment in your life in this time of economic uncertainty?
It’s easy to look with doom and gloom at the time of COVID-19 situation, but does this spell doom for the real estate market?
The government has requested that the market effectively shut down while we fight COVID-19. In the short term, will there be disruption and pressure on pricing? Yes. But in the longer term, is the market doomed? I’m going to stick my neck on the line and say that real estate will likely make a very strong recovery.
Here are a few reasons why:
First, before the pandemics struck, there was a shortage of supply and an increase in demand for good property. That dynamic has not changed. Yes, supply has been interrupted and it will take some time to catch up but that will only likely allow the demand to grow again.
Second, interest rates will be held low for some time to come. Inflation could happen, but it’s likely that low-interest rates will be available for quite a while.
Third, investors haven’t seen the stock markets get trashed, investors will return to real estate. It has happened on every occasion following a market correction and this time is not likely to be any different. Is this a guarantee? No. There could be some clouds on the horizon but a thriving housing market does wonders for the government’s popularity so I suspect that everything will be done to help it recover.
If you have been considering a home purchase then after this crisis could be the ideal time and here are the reasons why you should act fast when COVID-19 has passed:
First, once the market begins to function properly again, the supply and in-demand dynamics may fuel price increases.
Second, there are anxious sellers ready to sell and deals to be had.
Third, a short-term supply and a lack of recent market data to justify prices give you the opportunity to strike quickly.
Fourth, although financial markets may rebound, there will be a 6-9 months window for results to show real evidence of recovery. Short-term uncertainty makes it a buyers market.
Now is the time to get ready. Use your lockdown time wisely, research locations, and map out your financial options and be ready to go. Because when the doors open, you may be able to land the deal of a decade. Call me, and let’s make sure that you are ready to go!