The coronavirus pandemic has a lot of people wondering what will happen next. We can only use our previous economic experiences to understand what this situation would mean for property owners and real estate investors. Here’s what real estate investors in Westchester County should expect during the coronavirus pandemic.
Shift in Demand
The real estate market is constantly evolving, and it’s important for buyers and sellers to stay informed about the latest trends. One of the most significant changes that we’re currently seeing is a shift in demand. As the economy continues to recover from the pandemic, we’re starting to see fewer buyers and more homes for sale.
What does this mean for sellers? It means that buyers will have the upper hand during negotiations. With less demand for homes, sellers will have to be willing to sell at prices that are more favorable to the buyer. This is especially true in areas where there is a surplus of inventory, and buyers have a wide variety of options to choose from.
For sellers who are looking to sell their homes quickly, this can be a challenging market to navigate. However, it’s important to remember that there are still plenty of buyers out there who are looking for their dream home. By working with a reputable real estate professional, sellers can position their homes in a way that makes them stand out from the competition.
At the same time, buyers can take advantage of the current market conditions to find great deals on homes that were previously out of reach. With more options available, buyers can take their time to find the perfect home at a price that they can afford.
Overall, the shift in demand that we’re seeing in the real estate market is a reminder that the market is always changing. By staying informed about the latest trends and working with experienced professionals, both buyers and sellers can achieve their real estate goals in any market conditions.
Price Dip
The recent economic downturn due to the COVID-19 pandemic has resulted in many homeowners struggling to make their mortgage payments. As a result, there may be a surge in distressed properties available for sale in the real estate market. This presents a unique opportunity for real estate investors to pick up properties at a lower cost than market value. This will enable them to have more negotiating power during traditional real estate purchases.
Moreover, with the shift in demand towards a buyer’s market, homeowners may have to lower their asking price to make a sale. This, in turn, will result in a general dip in housing prices, making it easier for investors to find lucrative investment opportunities in the real estate market. With pre-existing homes readily available, there may be a lack of demand for new construction homes, further driving down the price of properties.
Overall, the current real estate market presents a favorable investment opportunity for real estate investors. With distressed properties and lower asking prices, investors can take advantage of the market shift and build a profitable real estate portfolio.
Distressed Sales
The COVID-19 pandemic has caused a significant economic downturn, leading to a surge in distressed properties on the market. Homeowners who have lost their jobs or are struggling to make ends meet may find themselves in an uncomfortable financial situation, which could lead them to sell their property. As a result, real estate investors are presented with a unique opportunity to purchase properties below market value, especially if the sellers are not getting many offers. However, it’s important to approach such negotiations with sensitivity, as these sellers may be more emotionally invested in their property than usual. By showing empathy and understanding, investors may be able to secure a great deal on a distressed property.
Low Occupancy
Real estate investors who own short-term or vacation rental properties may face significant challenges during the coronavirus pandemic, as many people may not be traveling or taking vacations due to safety concerns and financial constraints. Consequently, the occupancy rates of such properties are expected to be significantly lower. This presents a challenge for investors who rely on rental income to cover their expenses and generate profits. To address this challenge, investors may need to consider reducing their rental rates temporarily to attract more short-term renters. This may help to cover at least some of their expenses, even if they are not able to charge full rent. Additionally, investors should keep a close eye on the changing market conditions and adjust their strategies accordingly to maximize their returns on investment.
Eviction and Foreclosure Suspensions
Real estate investors in Westchester County should prepare for the impact of eviction and foreclosure suspensions on their properties during the coronavirus pandemic. As essential-only work orders and safer at home orders continue to keep people from working, many renters and homeowners have found themselves struggling to make ends meet. This has led to an unprecedented surge in unemployment, leaving people with barely enough to cover basic necessities like food and utilities, let alone rent or mortgage payments.
As a result, investors should expect to suspend any pending evictions and foreclosure measures on any tenants during this time. While under normal circumstances, those who are unable to pay rent or mortgage would most likely face eviction or foreclosure, the current situation has made it necessary to give them time to catch up on their payments. This also means that property owners with mortgages may not be able to pay rent on time, and would normally face foreclosure proceedings. However, during the coronavirus pandemic, these proceedings must be postponed to allow them time to recover financially.
It is important for investors to keep in mind that these suspensions may affect their cash flow and ability to make mortgage payments on their properties. They should consider communicating with their lenders and tenants to come up with a mutually beneficial solution that takes into account the current situation. While it may be challenging, finding creative solutions to help tenants stay in their homes and keep investors from facing financial hardship is crucial during this time.
Tighter Mortgage Lending
The current economic climate has led to a significant drop in mortgage rates, which has resulted in a surge of applications for mortgages on real estate. While this may seem like a great opportunity for buyers, it has also led to tighter restrictions on mortgage lending. Lenders are now being more cautious and may require higher credit scores or larger down payments to prevent over-lending. As a result, potential buyers may find it harder to qualify for a mortgage loan, which could affect the demand for homes in the market. This may lead to a decrease in home prices as buyers may be forced to lower their budget or look for alternative financing options. Real estate investors who have the funds to make cash offers may have an advantage in this market as they can avoid the restrictions and delays associated with mortgage lending.