2020 has been a difficult year for many people in a variety of sectors, including the real estate industry. However, the market as a whole did not face as massive trouble as it seem may have predicted. If you are considering investing in real estate, you can do so in the same manner you would have prior if there were no pandemic right now. That means you can rent, sell, and buy properties as normal, even all of the chaps happening worldwide. However, it is necessary to do so while being more vigilant and conscientious than ever.
Views by Benjamin Gordon Cambridge Capital
According to Benjamin Gordon Cambridge Capital, here’s what the pandemic’s effects will look like on the real estate 2020 and 2021.
- People will continue to homes.
Large cities have faced some trouble in the real estate industry. On the other hand, rural areas and suburbs are experiencing a real estate boom. According to the National Association of Realtors, previously owned homes’ sales increased by 24.7% in the United States. Even cities like Manhattan are faring well. Apartment costs are falling. This will bring minor fluctuations in the market for a while.
There are many reasons as to why many people are buying new homes. Some people want improved, or more isolated, dwellings. If the pandemic is here to stay, people need a secure place to live. Mortgage rates are lower than before the pandemic, meaning that properties are now far more affordable.
- International purchases are down.
It’s not at all surprising that foreign investors are putting less money into real estate investments in the U.S. This trend might accelerate in the months to come. It may prove fatal for sellers who rely on foreign investment. This is good news for some, as fewer people are competing to buy homes, which means that US nationals will pay lower real estate costs.
- Vacation homes and rental properties will continue to thrive.
For those who have properties to rent or sell, there’s a lot of potential for it to sell quickly during this pandemic. The vacation industry took a beating right at the start of this pandemic – even now, it is still suffering. However, vacation houses are doing well despite this global crisis.
Most of us are currently following social distancing norms. This means that we all want, and need, space for ourselves where we feel comfortable away from others. We need a place to call home. When you own a property to rent, you possess a marketable product.
Even hotels have been dramatically affected by this pandemic because of cancelled vacations, postponed events, and nationwide lockdowns. Hotel managers have realized they can procure customers when they promote their rooms as a quite workspace for remote professionals. They also work for quarantine purposes for those who need to self-isolate. However, keeping in mind current real estate trends, vacation rentals will continue to thrive while seeing steady profits.