Real Estate In A Post Coronavirus World

Real Estate In A Post Coronavirus World

Without a crystal ball, there’s no way of foretelling what will happen to the property market over the next few months, as the world emerges from forced hibernation. Hopeful buyers must decide between moving fast while interest rates are still low, or waiting longer to see if the housing market crashes in the wake of Covid-19 job losses. So far, an initial indicator shows that the number of homes listed in March 2020 was 15% lower than for the same month the previous year.

Talk to an expert

For expert advice on how local property markets are reacting, especially in California, the best source is experienced real estate agents in Rancho Santa Margarita, CA with a long track record in closing deals.

Even today, buying a first-time home could well be a smart move, preferably with job stability and access to low-rate financing. The same could apply to people looking for investment properties, supported by well-informed advice from a trustworthy real estate agent. Looking back ten years, the housing crisis churned up properties at giveaway prices, financed at rock-bottom interest rates. However, back then, there were few government bailouts for homeowners flailing out of their financial depth, with foreclosures rife as monthly mortgage payments outstripped family wages. This lesson seems to have been well-learned, as this time around, the government is already using the Coronavirus Aid, Relief, and Economic Security (CARES) Act to support citizens in difficulties, providing cash, deferring mortgages, postponing other debt repayments, and stopping businesses from laying off staff. This means that property prices are unlikely to drop that low again, although many families will still be unable to keep up their payments, and may well have to simply walk away from their homes.

Market shifts

As explained by a licensed real estate agent in Rancho Santa Margarita, CA, the real estate market has shifted dramatically over the past few decades. A generation ago, the accepted wisdom was that investing in bricks and mortar was a solid choice, as values would continue to rise steadily. However, this idea collapsed in the wake of the 2008 recession, and the current situation is now undermining this concept even more.

Once the crisis begins to recede and the immediate impacts have been absorbed, in terms of lost lives, shattered families and vanished jobs, society will be looking ahead, trying to mitigate some of the more drastic economic consequences. In terms of family incomes, unemployment and job insecurity will lower the number of potential real estate buyers, while pre-pandemic buyers may find it hard to keep up with monthly payments. Although there will certainly be great opportunities to snatch up bargains, inexperienced buyers should work with the best real estate agent for their areas of interest, as inside information and market familiarity will be crucial factors in pinpointing great deals.

Buyers seeking more upscale neighborhoods will benefit from the specialized know-how of a specialized real estate agent in Rancho Santa Margarita, CA. Larger and more luxurious properties (and their owners!) must be handled with tact and delicacy, while still ensuring realistic sales prices and acceptable offers.

Stay in touch

To stay updated on the local property market, call Senior Associate Ron Evans at (949) 929-2270 for the latest listings in Orange County.