COVID-19 and Home Values?

[golfgrouch]

Did anyone watch the Aaron Kirman interview on CNBC last night? He was really concerned about the real estate market. Was he actually crying near the end?

[GoingPlaces]

Washington DC based here. One of the most resilient RE markets in the world. We are seeing inventory sit, price reductions and several backing out. As expected under the circumstances. We do believe however that once this clears things will pick back up and get moving again. As for prices, anticipating softening with some adjustments in the single digit %- ten max. This assuming this all clears within several months and doesn't go longer.

We'll see. Many firsts here.

[psv]

It all depends, on where you are, which price bracket you are buying, if you need a mortgage, etc.

In general, prices will definitely go down, even if mortgages are going to be very cheap. Now is the time to sit tight.

[andyxxx]

Virtually unsaleable for the next few months and then it’s anybody’s guess.

I think generally (apart from hotspots and the odd property) if it’s worth 50% in 6 months it will be a surprise. It will take many years to get back to previous levels (when adjusted for inflation) and not in the next 10 years

[Hollie_Rollie]

I’m thinking about jumping into buying a rental property. Any advice? Do you guys see the prices dropping?

[CamSLC]

Originally Posted by Hollie_Rollie

I’m thinking about jumping into buying a rental property. Any advice? Do you guys see the prices dropping?

I think going into the next few months you'll see a lot of opportunity.

April is the first month these newly unemployed renters aren't going to pay. Over leveraged land lords may not have the cash surplus to deal with months of non-performing rentals.

Unfortunately credit is also going to get more difficult to acquire. We have quite a few new construction single family homes, at this point the ones that are not closing are because of the lender, not the buyer.

[Hollie_Rollie]

Originally Posted by CamSLC

I think going into the next few months you'll see a lot of opportunity.

April is the first month these newly unemployed renters aren't going to pay. Over leveraged land lords may not have the cash surplus to deal with months of non-performing rentals.

Unfortunately credit is also going to get more difficult to acquire

Thanks. Any good resources to look into? Completely new to this. I have the cash on hand. I just want to make an as informed decision as possible

[jltait]

Every single open house is cancelled here. Transactions are going to reach an all time low for sure. As others have mentioned, how this cuts against pricing is all going to supply and demand, both of which are plummeting, so who knows.

[CamSLC]

Originally Posted by Hollie_Rollie

Thanks. Any good resources to look into? Completely new to this. I have the cash on hand. I just want to make an as informed decision as possible

Set the parameters of what you want. Make friends with a lot of realtors. In my state we have non-exclusive buyer broker agreements. Essentially an open relationship with an agent.

So you can have several of them looking for deals at the same time, different offices, specialty brokers for income properties.

[Hollie_Rollie]

Originally Posted by CamSLC

Set the parameters of what you want. Make friends with a lot of realtors. In my state we have non-exclusive buyer broker agreements. Essentially an open relationship with an agent.

So you can have several of them looking for deals at the same time, different offices, specialty brokers for income properties.

Gotcha. Just bought my first house last year so I still have a somewhat warm relationship with my realtor. I notified him of my interest and he said something similar that a post above said, all open houses are cancelled and they are waiting to see what the government does with forgiving mortgages. I live in Philadelphia so I’d be looking for something in the city.

[golfgrouch]

Los Angeles appears to be among the first markets to show signs of cracking:

https://people.com/home/kaley-cuoco-...ut-see-inside/

[gejay99]

Originally Posted by Blansky

With Covid-19 I value my home even more since apparently I’ll be spending more time there.

Amen, just lucky we own homes.


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[Burlington]

Our house buying is on ice for now. Will see how things look after all this is done.