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.
Shift in Demand
The real estate market is expected to start having fewer buyers and more homes for sale. This means that buyers will have the upper hand during real estate negotiations. There will be less demand for homes, so the sellers will have to be willing to sell at what the buyers are willing to pay.
Homeowners may be losing income and might not be able to afford their mortgage payment. There may be a surge in distressed properties, which means more homes available for sale. Housing prices in general are not expected to increase, and there may be a lack of demand for new construction homes since pre-existing homes will be readily available.
Real estate investors that own short term rentals or vacation property rentals should expect to have extremely low occupancy rates while the coronavirus pandemic is going on. Most people will not be vacationing or visiting relatives while safer at home orders are in effect across the nation. In addition to the homeowners, vacationers may have lost the income needed to go on these trips. You may need to lower your rates temporarily to attract short term renters. Or consider selling your property to a direct buyer like Valley Home Buyer.
Eviction and Foreclosure Suspensions
Real estate investors in Phoenix should expect to suspend any pending evictions and foreclosure measures on any tenants during the coronavirus pandemic. Essential-only work orders and safer at home orders have caused an unprecedented amount of unemployed workers, which means they may barely be able to afford food and may not be able to afford the roof over their heads. Under normal circumstances, these people would most likely be evicted, but during the coronavirus pandemic, the eviction must be suspended to give them time to come up with the unpaid rent. Any property owners with mortgages that have also experienced unemployment may also not be able to pay rent on time and under normal circumstances would have foreclosure proceedings drawn against them, but during the coronavirus pandemic, these proceedings must be postponed. Instead of waiting, another option is to sell the property to Valley Home Buyer and be free of the landlord stress!