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How COVID-19 is Changing the Real Estate Market

Churchill Property Manager Wearing a Mask to Protect Against COVID19The coronavirus outbreak has definitely shaken our lives. These changes may be temporary, or they may be here to stay for a while. Regardless, the future does seem a lot less certain than we would like it to be. With all of this happening, Churchill rental property owners are beginning to think about how COVID-19 might affect the real estate market.

Based on current economic indicators, one can say that changes are on the way. We don’t necessarily have to be afraid of change. Market data shows that home prices are still rising, albeit very slowly. Even if growth in the first part of 2020 was less than 1% but it has improved 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. As home prices continue to grow, this means that the real estate market continues to be resilient in today’s extraordinary circumstances.

It is important to take note of this because many property owners fear another housing market crash -like the one in 2008- will happen. With today’s high unemployment rates, it seems like foreclosures are unavoidable as people stop paying their mortgages. But most experts say that another real estate market crash does not appear to become. Instead, most agree that property equity is likely to decrease as buyers nationwide continue to show interest in both existing and new homes.

Multiple reductions in mortgage interest rates have also been an unexpected change this year. To prevent a housing market crash, the Federal Reserve has slashed mortgage interest rates to historic lows. This presents a lot of opportunities for Churchill rental property owners to avail of these low rates. 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. Longer turnaround times from inspection to appraisals are to be expected because of the high demand. Patience is a virtue, so they say. It couldn’t be truer! As long as you already have a lender on board, you can still take advantage of the current rates.

You should act now because even if experts don’t see a housing market crash happening soon, another recession is almost certain. Stimulus funds from the federal government may have helped soften the blow, but it is still a temporary solution. Until the trajectory of the coronavirus ceases to be unknown, or if conditions worsen, not one of us can say how COVID-19 will affect the real estate market next year. Many real estate professionals are adapting to pandemic conditions by using digital technologies in an innovative way. 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.

The new normal has given rise to the need for these new tools in the real estate market. These will increase efficiency and energy in the real estate investing industry. For Churchill 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.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

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