As the world contends with the coronavirus outbreak, several aspects of life have shifted. Many of these changes may be temporary, although others may last quite a while. The future seems less certain than it used to be. Consequently, it’s inevitable for Jamaica Plain rental property owners to ponder how COVID-19 is changing the real estate market and how those changes may affect you.
In accordance with current economic indicators, it’s safe to say that changes are on the way. Though that does not imply that all of the changes will be bad ones. Market data shows that home prices are still rising, even if little by little. Growth in the first part of 2020 was less than 1%, nevertheless, that has improved since then. Slower home price growth might be good news for you if you are prepared to buy another rental property though it may slow the appreciation of your property values on existing properties. Be that as it may, the fact that home prices continue to grow is an excellent sign that the real estate market continues to be resilient in the face of extraordinary circumstances.
This is vital considering a lot of property owners are cautious of another housing market crash as, for instance, the one we experienced in 2008 – and for good reason. With such high unemployment rates at this time, it looks hard to avoid another big wave of foreclosures as people stop paying their mortgages. On the other hand, most experts do not see another real estate market crash coming. On the contrary, most agree that property equity can potentially decrease as buyers nationwide continue to show interest in both existing and new homes.
One other unexpected change this year has been multiple reductions in mortgage interest rates. For the purpose of preventing a housing market crash, the Federal Reserve has slashed mortgage interest rates to historic lows. As a Jamaica Plain rental property owner, such low rates present several opportunities. These can range from refinancing existing loans to lowering your monthly payment to borrowing for your next property at very favorable rates. Naturally, the low rates have induced something of a mad dash to secure financing, causing numerous lenders to be either overwhelmed by demand or tightening their lending criteria – or both. High demand has further created longer turnaround times for countless parts of the purchase process, from inspections to appraisals. Nonetheless, so long as you are patient and have a lender on board, you should definitely be able to take advantage of current rates.
Doing this is particularly imperative because while a housing market crash may not be expected, experts predict that another recession is almost certain. While stimulus funds from the federal government have helped delay the worst of it, such a fix is temporary at best. As conditions worsen, and with the trajectory of the coronavirus outbreak still unknown, industry experts don’t know how COVID-19 will affect the real estate market next year. Plenty of real estate professionals are adapting to pandemic conditions by using digital technologies in new and ingenious styles. With virtual sales, online property tours, and Zoom consultations in their arsenal, real estate brokers, mortgage lenders, and property managers are employing recent tools to keep the market moving forward.
Thus, it can be that these new tools become the new normal of the real estate market, which leads to further efficiency, and energy in the business of real estate investing. For Jamaica Plain rental property investors, it’s significant to stay vigilant for opportunities to streamline and modernize both your investing and your property management process. Contact us today if you’re looking for help on how to do so, so you successfully make it through whatever the future may bring.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.