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And I can smell the ignorance of those who have no clue about how things work in a capitalistic system.
lifelong renters who seem to believe their rent should be fixed, or only allowed to increase by some % they deem fair.
I would provide this counterpoint though - on the residential rental level, landlords are better off to work with their tenants. And a landlord is responsible for running their business so it doesn't require 100% occupancy to pay their bills.
In my area, there are so few houses for sale that they are selling in hours. And these are houses that anywhere from $300,000-$550,000+
I'm closing in a matter of days. My buyer seems pretty excited...at least according to all of the mail they already have coming to the house: apparently, my kitchen is being redone, the bathrooms are to be updated, and there is a crazy closet organization thing about to happen in the master bedroom.
From where I'm sitting, people are hunkering down for the long haul whether it's renting or buying.
I'm in the DC area too. Yeah many people are waiting and waiting and holding, so that's why when something hits the market, it's being bid up with multiple offers.
I think the real estate market will be fine in certain regions. I definitely see a small drop in prices ,but I don't think it's going to go down 40% or so. But it will vary on the market. In places like DC where govt and tech and contractors are around and can work remotely, I think those jobs will remain for a bit. But it also depends on how long this goes on. I've heard this should be done by June, but also I've heard that it will last into the fall. If it last only until June, I expect things won't be as bad because when stores and retail and travel open back up, the jobs will come back.
I worry more about the behind the scenes stuff, like if the feds buy up all the MBS, or if our dollar will be useless soon. Those are the bigger things I worry about if a collapse will happen.
*My* crystal ball says that the real estate housing market will resume somewhat normal (perhaps better than normal) activity in about mid July. ALL markets hate uncertainty, but I think we will have a fairly good degree of certainty in about 3 1/2 months. I think we will have this certainty for several reasons.
First, we will reach the PEAK death rate well before mid-July and will be well advanced along the downslope part of both the infection rate and the death rate curves.
Second, I expect that we will have OFFICIAL approval for use of hydroxychloroquine and perhaps another existing drug by early May, and this will make a HUGE difference in the survival rate of those who become infected and seriously ill with coronavirus.
Third, while vaccines to protect against becoming infected with coronavirus won't be available by mid-July, there will be some very positive reports about test trials which will give encouragement and a positive attitude for the near future.
Fourth, I look for travel and "social distancing" restrictions to be lifted in some of the more rural areas in May and much of the rest of the country in June, so there's no reason why housing sales won't be in full swing by mid-July.
Fifth, if people can work from home (which millions of people already do), they can buy a new home from home, and many people will want to do so before the next school year starts (which may be delayed to accommodate this very issue). We can have video showings of homes. No need to leave your computer. The house inspector and bank appraiser can still do their job. The title company or attorney can still do their job. The sellers can move out and the new owners can move in a day or so later.
The world isn't coming to an end with this CV situation. It's just going to change how we do some things. Life goes on, Buttercup.
Where are you getting this information?! Vaccine by July? Next year at the earliest.
What about all the 100% AirB&B property that are sitting vacant & the owner now has to pay for bills out of pocket. Good thing, they can delay mortgage.
I don't think situation will be that worst, if this virus takes longer.. mortgage and rent will be pushed back.
Our neighbors just built a shop with attached living quarters with no cooking facilities. They have plans to rent it out as Air BnB. Unfortunately, this is not allowed in our zone. The permit was for $180,000 for the structure plus they have to install septic and water plus extend power and put in the access road. I cannot figure out why county allowed this but I guess you can build that structure, just not rent it out under R5A zoning. They are nasty people so I hope they lose out. One isn’t working; the other part time.
Yes, as I wrote in my post, I am going crazy here. To close or not to close, this is the real question.
195k vs original 230k and closing on 4/17 date. Spent $1100 on appraisals and inspections.
Love this condo very much and plan to live there BUT this current situation gives me headache.
The hell with this sale and $1100 and continue to rent OR take this 3.5apr deal????? Only two weeks left. The job is secure but will that $195k price crash soon, and I will regret so much.
Going crazy here. Please help.
IMO, it's a right decision to go on. If you got a fixed rate then your mortgage will not be affected by the housing market changes, so it won't have any negative effect on your ability to pay however the market change. Of you are going to live there for a while and not going to sell the condo, then it doesn't matter if the market crash or not. If it crashes then you will pay less for property taxes since the property value would be rated lower. If it goes up, still doesn't matter because you are not selling right away. Selling when the market hot is the thing that counts.
You got 35k off the original price, so it's probably a good deal cause the difference is greater than 10% in prices which is a better deal than most cases. If you withdraw then you lose $1100 which is some $ to consider. Personally, I don't like buying a condo due to all the high HOA, living space, limited backyard, all the rules and regulations. But you said you love it very much so it's probably the place for you.
So if you know you are gonna live there long enough to wait for things to get under control then go for it. One thing to notice is a recession is probably gonna come soon enough. When the housing market crashes, condos and townhouses will lose values more comparing to SFHs.
OP you have forecasted this excellently, That's exactly what is going to happen if this isn't over soon. Judging by the real time CDC data, I think our president is being optimistic about this blowing over by April 30th.
I've been watching the numbers for the past 3wks and the virus trajectory, Needless to say NY is barely the tip of the iceberg just wait until it hits California, Hawaii, VI/PR; Its not looking good at all is all i'm saying.
I just don't see how we are going to pick up where we left off after our society and world has experienced one of the greatest shocks since WW2 or the Great Depression. You don't just recover the next day and pretend that nothing has happened after a historical event like this.
I also don't know why people think this recession will only affect low wage service workers as if they are isolated from the rest of the economy. I personally think we will start seeing a lot of layoffs in other sectors as well, both blue-collar and white-collar. The economy is connected, when people stop spending money....it affects everyone. Not only that, but we are part of a global economy, so when people overseas stop spending, it affects everyone too, including the U.S.
This is not a go back to business in mid-summer scenario.....this is going to be with us for a while. And yes, real estate will definitely be affected.
We have not seen anywhere near the full cascade of impacts on businesses and employment.
IMO, it's a right decision to go on. If you got a fixed rate then your mortgage will not be affected by the housing market changes, so it won't have any negative effect on your ability to pay however the market change. Of you are going to live there for a while and not going to sell the condo, then it doesn't matter if the market crash or not. If it crashes then you will pay less for property taxes since the property value would be rated lower. If it goes up, still doesn't matter because you are not selling right away. Selling when the market hot is the thing that counts.
You got 35k off the original price, so it's probably a good deal cause the difference is greater than 10% in prices which is a better deal than most cases. If you withdraw then you lose $1100 which is some $ to consider. Personally, I don't like buying a condo due to all the high HOA, living space, limited backyard, all the rules and regulations. But you said you love it very much so it's probably the place for you.
So if you know you are gonna live there long enough to wait for things to get under control then go for it. One thing to notice is a recession is probably gonna come soon enough. When the housing market crashes, condos and townhouses will lose values more comparing to SFHs.
If the values go too low you won't pay less for Property tax.
The town still needs the same amount of money for their budget.
They will either do a re evaluation or just raise the rate if there are too many successful appeals.
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