(STL.News) The U.S. real estate is hit hardest by the Coronavirus. All the businesses from the mart were closed except those of essential. The same is true in real estate. The transaction was necessary for the transition to proceed, but are prohibited, such as an open house. However the real estate market is steadily coming back up. The contract is underway. Housing purchases became choosy and mortgage interest rates and the atmosphere was troubled but realtors are planning on closing houses at the beginning of May. Inventories are significantly less is true. Staging to sell the customers’ homes and continued to wait. Even if houses are on sale, no one comes and sees houses. Many sellers already remove houses temporarily from the market and that there was nothing for people. The overall mood isn’t very nice. Just a month between sellers feeling was converted into a seller’s market into a buyer market. Buyers tried to go lower on house prices. It was difficult to imagine this situation before the coronavirus outbreak. The Coronavirus before early March, the hot scenes that are difficult to imagine. However, the coronavirus has changed everything.
In May, the market is expected to be held again. Trump’s strong will, governors who hold the key carefully as well as preparing to open. So will the U.S. real estate market is the fierce competition in May. May and June of Trent in the next year will be determined by current market trends, for the next 3 month will determine the trend of next year’s housing market. Even if May and June, we may have temporarily busy seasons, the Coronavirus already impacted Us.S. real estate, even if it is active is dramatic changes of U.S. real estate in May and June. It appears that at least a temporary decline was inevitable. The coronavirus situation of self-employed people, including restaurants, is inevitable. And companies are also expecting massive layoffs, according to the performance deterioration. The number of people to get home in such a difficult situation, buyers would be diminished. The decline in property prices in purchasing power decline seems to be inevitable. Furthermore, those intending to buy a house for investment purposes are also diminished. These people will watch the development of the housing market more and will wait for the right time.
So how should we take my own real estate strategy in this situation. In the short term, the situation is very grim. It looks like house prices indefinitely will be trashed and the game when recovery will be worried again. In addition, the Coronavirus isn’t going to be over when. In this situation, however, we need to learn from history. U.S. real estate and our prime mortgage crisis in 2008 by the US economy, market was sharply down enormously, but only in less than two years it was revived. It is a story of hope. The real estate situation is much better than 2008. At the 2008 crisis a huge real estate loan is the crux of the matter. But then real estate loans disappeared. Became really uptight. Experts are saying that Coronavirus would not have a big impact on the real estate market. But overall the economy is down to how real estate would not be affected. The economy was already in recession and with high unemployment rates increasing, there will be many people who cannot afford to pay mortgages on time. This recession will naturally lead to a real estate downturn. On the one hand, if thinking about the cash and real estate investment opportunity. It is going to remain because it is an opportunity to buy homes cheaply. (The first principle of real estate investment to get a bargain.) The value of the recession, commercial buildings will fall completely. If you are certain about a booming economy within a couple of years, buying cheap real estates might be the one way to invest your money. A person who is already investing in a house, doesn’t have to sell their property in a hurry. In this period real estate lease deals are reduced, and will continue. If the competition is better, going more than well on loan deals can do it then. If you are a first home buyer, this would be the best chance to buy a house. Right now, it is difficult for everybody. So it is with the real estate market. However, the government is pouring a trillion dollar flush with the money market. This will naturally lead to asset bubbles. Sometime next year, even real estate stock would climb sharply again, and start soon. History repeats itself. So we should learn from history. When no one knows when would be the rock bottom. So we will have to watch the market. First the stock will move and then real estate will be followed. Historically, the US recession was not so long, These asset bubbles are that the rich get richer, the poor will be even worse. At times like this, economically you just have to prepare. Day after day, endurance your knowledge to foresight the next 5 years to 10 years.
Author: Sung-Wook Choi: Choi is a former journalist in Korea, currently OR/WA licensed real estate agent – http://sungchoirealty.com/