Real Estate During Covid-19

What is normal?

Like you, I want things to go back to 'normal' as soon as possible. My parents are in their late 60's living in New England. We talk everyday and don't know when we'll see each other again. The stories of heartbreak I'm hearing from families torn apart by this virus are devastating to say the least.

If you are concerned about foreclosure, mortgage payments, or even possibly a short sale

let me help you.

  • What would it take to return to normal?​
  • What happens if normal doesn't return until late 2021 or even later?

 

What is your plan if you cannot pay your mortgage?

What happens when a ton of people are in the same situation?

Sadly, normal is not likely to return anytime soon.

Here are the main economic reasons why:

The FED controls monetary policy in two ways -

  1. Interest Rates

  2. Cash on hand

  1. Interest Rates are currently at a record low, meaning, if you qualify - this is one of the best times to purchase a home based on interest rates alone. However, a low interest rate is generally connected to a large amount of Federal Reserve Money to guarantee the low rates.

  2. Because of COVID-19 the government has issued trillions of dollars in stimulus money to keep the economy afloat.

The Virus is still here and big companies are reacting:

Did you know Microsoft is closing all their stores in the US permanently? Did you know Apple has renegotiated their leases to half their pre-covid rate? Did you know that at least 1/3 of currently closed businesses are not likely to reopen?

Friends, much like the virus, the real estate market moves slowly and takes time to catch up with the flow of people, but ultimately impacts everyone.

Take this combination of factors -

  • Stimulus money has flooded the market with unsecured funds

  • People are NOT getting back to work in a 'normal' sense anytime soon

  • Mortgage companies will only give so much leeway then they will come for their money

What would it take to return to normal?

 

If you have home equity this is a great time to cash in that equity by selling your current home and either downsize, rent, or reconsider your lifestyle goals. 

© 2020 by STOUT Real Estate at Ancona Real Estate.