Coronavirus and Real Estate
How might the corona virus affect real estate specifically? It has definitely affected the stock market and the chances of a recession on Wall Street seem possible, but does that translate to real estate?
The outbreak of the virus has shown that supply chains, retail, travel, and even lending are very susceptible to our current market situation. The difference with real estate is that it doesn’t really move around very much. It’s in one fixed spot. And while some people may have to default on their mortgage payments, it’s unlikely to happen in mass because interest rates on home mortgages are very low. Additionally, people who own homes have a lot more equity than when they did back in 2008. Because of these low interest rates people are far more likely to just sit in their homes and wait it out until the market recovers.
This is com-pounded by the fact that interest rates on 30 year fixed mortgages are falling quickly
If you are new to real estate then perhaps there is an opportunity for you coming up.
I am already seeing that there are far less buyers coming around to buy single family homes and even multifamily properties.
So it’s possible that you could get a really good deal. That is not to say the market might go down (it could).
What is nice however is if the property is for an investment and the cash flows from that property are positive and you plan to hold that property for many years, then perhaps it’s worth it.
This is compounded by the fact that interest rates on 30 year fixed mortgages are falling quickly.
A place you can go to buy your first property in real estate as a beginner is the court house steps.
This is where people who’s homes are being foreclosed usually sell their homes.
By going there you might be able to buy a property for a very competitive price because there are likely to be less people out there bidding and also because the supply of those homes will likely be the same. This is true because they have to sell in a good or bad market!
So supply remains the same while demand decreases, usually this results in lower prices!
Associate Broker, CEO
I grew up in the Real Estate industry. I started by ripping up carpet for turnovers in middle school and have been moving up the ladder ever since.
Now I am ranked in Arizona’s top 10 brokers for real estate sales volume and total asset value sold. I am the go-to broker for large funds, Family Trusts, and select high net-worth individuals.
My newest Real Estate Equity Fund now brings my investors added value through our vertically integrated business model.
For years I’ve bought 30 houses a month cash at market rate. I buy and sell apartment complexes between Phoenix and Tucson. I reposition and rehab large apartment complexes in Arizona.
I helped grow the family property management company from 350 properties to over 1000. This was achieved by creating superior software and marrying that tech with generations of real estate experience.
Robert (Bob) Collopy – am not a CPA, attorney, insurance, or financial advisor and the information in these videos shall not be construed as tax, legal, insurance, construction, engineering, health and safety, electrical or financial advice.
IF stocks or companies are mentioned, Robert (Bob) Collopy MAY have an ownership interest in them — DO NOT make buying or selling decisions based on Robert (Bob) Collopy’s videos.
If you need ANY professional advice, please contact a qualified CPA, attorney, insurance agent, contractor/electrician/engineer/etc. financial advisor or the appropriate professional for the subject you would like help with.
Linked items may create a financial benefit for Robert (Bob) Collopy. Any use of other media is by fair-use only.
Sole Property of Robert (Bob) Collopy
Fort Lowell Realty and Property Management Inc.
3020 E Camelback Rd #255, Phoenix, AZ 85016