The Real Estate Market is Booming During the Covid-19 Pandemic
Posted by Techyscouts | Posted on 10/15/2020
Throughout the pandemic many aspects of our lives have changed and we’ve all been surprised by how things are going in one way or the other. One aspect of this new normal that’s surprised many is how the real estate market has been performing, many homes are being bought and sold. The National Association of Realtors reported that there was a 24.7% increase in home sales in July, which has marked a two month trend of substantial sales gains.
But what has been driving this surprising trend? It could be that because so many are spending a significant amount of time inside that they may have begun thinking about the way in which they live. Some are moving into bigger homes while others are looking for homes that have room for activities outside the house, like a pool or a larger yard. There’s also been a trend of purchasing a home to rent out.
Choosing to buy or sell a home is easily one of the biggest financial decisions you’ll make and is an important one to think through even in the best of times. So, what are some factors you should consider before deciding to buy a new home or rental property during this pandemic?
Low Mortgage Rates
You may have heard in news reports how low mortgage rates have been lately. In fact, rates are the lowest they’ve been in about 20 years. Many of us are familiar with 30-year fixed rates ranging between 3-4% and now rates are dropping below 3%. These low rates are not only a great opportunity to buy, but also a great opportunity to refinance as it allows your dollar to go farther.
Opportunity to Generate Income
You may be in the group of buyers looking to find and purchase an investment property to rent out. This is a great way to generate passive income as the current recession has created a new group of folks looking for homes to rent.
With how vastly different our world is looking and acting since the pandemic began, there are many folks who live in the city that may be looking to rent in areas that allow them room to roam. If you’re considering purchasing a property to rent out look in areas where city dwellers may want to flock if strict lockdown restrictions return.
If you choose to purchase to rent out be sure that the rent you request will cover all your costs like the mortgage, real estate taxes, insurance, as well as any maintenance costs.
Contact Mike Millea
Have you been surprised by how well the real estate market has been performing throughout this recession and pandemic? If you’re considering a real estate purchase we will be happy to discuss options and ensure you are looking in the right direction. Purchasing a home doesn’t have to be hard, more often than not you just need the right resources. Contact Mike Millea to help you locate the right investment property for your needs. We’re looking forward to working with you!