8 Facts about how the Coronavirus could affect the US Housing market in 2020.
Will anyone buy my house right now? What can I do to get my house sold?
Here you will find a review of online information, brought together in one place for your convenience. We discuss topics like “Can I sell my house?” and “Can I buy a house right now?”
My family found this review very helpful. They even shared it with all of their friends. Now I will share it with you.
Will my house value be better, worse or the same in 12 months?
There is a lot of anxiety and uncertainty at the moment. “What will my house be worth in a year’s time?” “Is there any chance someone would buy my house right now?”
Of course, these questions are about the US Housing market. If you were planning to sell your house before maybe now you have some hesitation. This hesitation probably brought on because of the global pandemic.
We spoke to a real estate agent in Indianapolis, Indiana, that said: “A lot of clients have concerns because last summer everyone wanted to buy their house and now it seems like a very difficult time to sell it.”
These reservations were repeated by home buyers and sellers in Denver Colorado. In Denver the market was already so strained, adding this pandemic, “has made things very difficult to predict” stated Matthew - a local agent. He went on to say “Unfortunately, there is not a crystal ball that we can turn to.”
So we did the next best thing. We turned to the internet to learn what is going on at the moment. After spending hours researching and reading we were able to form an opinion about how COVID-19 could possibly change the value of houses. We found out if it still is possible to sell your house. We looked at if anyone will buy your property right now. What we found out was this:
1. House prices have never been higher.
2. History repeats itself.
3. You can still sell your house if you want to.
4. You can still buy a house if you want to.
5. The government is helping the economy.
6. Interest rates are at historic lows.
7. The economy has weather storms in the past.
8. The housing market is much stronger than in 2008.
After learning these facts I was able to sleep better. It is said that prices will probably go down but it is also suggested they won’t go down the same as in 2008.
I hope this research helps you as it did me and my family.
So don't miss out now on the main event.
The US housing market vs. COVID-19.
1. House prices have never been higher.
Did you know the value of your house has never been higher?
Forbes reported in October 2019 “home prices have hit a new high” and wrote, “it is now the highest median sale price on record”.
The “gurus” are saying that house prices will come down but they are coming down from all-time highs! Let’s focus on the gains we made over the last 5-10 years. Be patient and they will go up again.
2. History repeats itself.
Many experts were saying that the market was going to cool off soon.
House prices cycle up and down. The same “gurus” that say prices will go down because of the pandemic were predicting a slow down anyway. That is because after such a long period of increases it is normal for the market to “cool off”.
Take a look at history, up then down then up then down… Can you guess what comes after the down?
3. You can still sell your house.
Over the past 5, it has never been harder for someone to find the home of their dreams. The inventory still remains very low. This is great news if you want to sell your house quickly.
We have to be more cautious with respect to the coronavirus. If you want to go through the process of selling your house in the traditional way there are agents still out there ready to work hard for you.
Unfortunately, they are restricted by government regulations. For example, it is very difficult for them to show your home to potential buyers. But they will try to get your house sold. It might under certain circumstances and take longer than usual.
For a much easier route, you can sell your house for cash. I-Buyers will basically pay you what you would get for your house from an agent, minus the commissions you would be charged.
For example at Watson Buys we buy houses really fast. In fact, we can close in less than a week. We negotiate with you a fair price, and we explain how we come to that price. We don't hide anything. We are a small local company, so we understand the value of your house and neighborhood.
Finally, Watson Buys will purchase your home at no cost to you at all. No commissions, and no fees. We will buy your property AS-IS, so no costly repairs. This makes the process of selling very easy for you.
4. You can still buy a house.
For the same reason, you can sell your house and you can still buy a house. See number 3 above.
Plus, because some people are waiting on the sidelines, if you are proactive, you can get ahead of them. So reach out to your local realtors and find out how they can help you.
5. The government is helping the economy.
The US Government just wrote a check for $2 Trillion. This will help people pay bills, create jobs, and keep the economy moving forward. It won’t solve all the problems but it will help a lot.
6. Interest Rates at historic lows.
The Federal Reserve has cut interest rates to historic lows. Now you can refinance and make your payments more affordable. Also for people that are wanting to buy a home, the mortgage payments are more affordable. Both of these things will help the value of our homes.
7. The economy has weathered storms in the past.
We have seen major events in recent history. Through these events, the US economy was able to survive it and then thrive afterward.
In-depth research by Ted C. Jones, Ph.D. looked at prior events like SARS and H1-N1. He found that despite these events the economy was able to continue on its predicted trajectory.
8. The housing market is much stronger than in 2008.
Back then defaults were really high. Currently, defaults are at record lows. There are new rules and regulations that protect us. Plus banks are in a much stronger position too.
Also, a big reason for the Great Recession was problems with loans that were given to people that couldn’t afford them. This is not the case currently because there are much stricter lending policies in place.
Conclusion
It is hard to know what is going to happen next. The headlines can make it all sound very scary. I have tried to cut through some of the noise by learning about some of the things that are going on right now.
Sometimes the news just focuses on the bad. I get it, that stuff sells. Right now though I just wanted to be able to relax a little.
Learning about these things has made me rest easier. I sincerely hope they will help you too.
I found out even more great stuff. It’s right here for you if you are interested.
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About the Author.
My name is Shaun Martin, I work at Watson Buys. We are a company that buys houses. After buying a house we will do a tasteful remodel on it. This supports the community by increasing the value of the home and surrounding community.
I have been investing in Real Estate since 2007. My first deal was to buy and hold a single-family house in Denver, CO. It is in a neighborhood called Montbello. I still own it in-fact. It has been a great property. I must admit, when my wife and I bought it, we were very nervous as we didn’t know much about being a landlord.
Since then, I have added a number of rental properties in Denver, CO, Port Richey, FL, and Indianapolis, IN.
In 2018 I sold my Medical Equipment Company and became a full-time investor. Since 2018 I have continued to focus on the buy and hold strategy. I have also flipped a number of properties, become a private lender, and focused a lot more on sourcing my own deals.
Finally, I have begun making investments in real estate, using my Self-directed and Roth IRA.
I am not a get rich quick guy. I am not an aggressive investor. I believe in mutual benefit to all people involved in each deal I do. I am a believer in cycles. What goes up must go down - and then it will go right back up again. Additionally, because of that, I believe that as long as you sell when you want to, in real estate, you will do great.
Real Estate has given me the opportunity to create security for me, my family and friends, and more importantly, time to enjoy it.
Website: https://www.watsonbuys.com/
Contact Numbers: Colorado (720) 418-8670 & Indiana (317) 720-180
