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How will coronavirus affect the housing market?

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  • StateOfMyHead
    replied
    Originally posted by Cubicle View Post
    ^^^ Landlord... ugh. Not fun if you've never done it before.
    So never fun but it can be profitable and or tolerable if in a jam. Something to consider at present is tenants may have difficulty paying rent. I wouldn't buy a new property with intention to rent right now but in the near future if prices are favorable and people are relocating or have been displaced it could make for good opportunities.

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  • beagler
    replied
    Take large mortgage payment. Add substantial income reduction. Yield foreclosure/ selling/ price drops.

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  • uptoolate
    replied
    I expect a big downturn here for several reasons. People feel poorer due to contraction of equities and slow down in the economy. Off-shore money will decrease due to travel restrictions which are likely going to be in place for quite some time. Interest rates were already at historical lows so I don't think the recent drop is going to have an impact. People who are leveraged in both equities and real estate are going to have to sell. And in the worst case scenario, and hopefully this won't come to pass, there is the possibility that housing stock is going to be freed up due to incapacitation or death of elderly individuals living alone or as empty nester couples in family homes. And finally, the market here has been overheated for a very long time and a correction was seemingly overdue.

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  • Cubicle
    replied
    ^^^ Landlord... ugh. Not fun if you've never done it before.

    I predict a downturn in housing transactions & price. Not sure how bad it's going to get. Like others, dependent on how long this drags on (& the total damage it causes).

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  • MSooner
    replied
    We had ours listed for 2 days and took it off (now under shelter in place--no showings, appraiser, or inspector anytime soon so no point in being listed). We're going to try again when things start to get better. I'm contemplating being a landlord for a few years as well. We shall see.

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  • Lordosis
    replied
    The house down the street went up for sale a few weeks ago. I think it is priced kind of high even without a pandemic. I might not get a new neighbor for a while.

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  • White.Beard.Doc
    replied
    I'm with Zaphod on predicting this one. Mortgages will remain cheap, but incomes will be down in the aggregate way more than mortgages.

    And buying a home is a leap of faith into what the future will bring. Faith in the likelihood of good times ahead is going to be broken very badly in the coming months. Consumer sentiment will tank to a lower level than it did in 2008.

    My guess is significantly falling housing prices for all but the entry level, least expensive starter homes. And falling rents for anything but the cheap starter apartments as well.

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  • Zaphod
    replied
    Originally posted by East coast View Post
    Just went under contract on a house and we definitely got a deal we would not have gotten 3 weeks ago and would have been laughed at 6 weeks ago. I’d estimate it at a full 10% off what it woulda reasonably been if the timing were different. Who knows, maybe I could get another 5% if we waited a few more months, but I doubt it. Greedy when others are fearful...as long as the numbers make sense otherwise. We’ll see in 10 years if it was a good timing decision or not!
    I'll take the other side of this. You'll be shocked with what you could have gotten in a couple months.

    People are not fearful, theyre anxious.

    Layoffs are just starting, etc...it takes time to ripple through the system.

    Shocked that after all thats happened people still arent seeing it.

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  • CordMcNally
    replied
    I think sellers are going to be a little more spooked about likely declining interest/housing values and will be more likely to accept lower offers.

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  • East coast
    replied
    Just went under contract on a house and we definitely got a deal we would not have gotten 3 weeks ago and would have been laughed at 6 weeks ago. I’d estimate it at a full 10% off what it woulda reasonably been if the timing were different. Who knows, maybe I could get another 5% if we waited a few more months, but I doubt it. Greedy when others are fearful...as long as the numbers make sense otherwise. We’ll see in 10 years if it was a good timing decision or not!

    Leave a comment:


  • beastmode
    replied
    As someone who is actively looking to buy I can tell you that in the bay area homes are selling over list price with multiple offers. There is low supply and a lot of demand.

    Mortgage rates have actually spiked up if you’ve been following closely.

    If this is a forever home for you follow the advise of many others. Buy when you’re ready. The home you’re going to live and raise your family in isn’t an investment.

    Leave a comment:


  • Cubicle
    replied
    Postulating:

    Mortgage rates will decrease slightly from where they are now. They will not go to zero as some say (for obvious reasons). And I honestly do not think they will fall much below 3%. At some point, lenders have fixed costs that too low of an interest rate just cannot cover.

    Housing prices will go down now, up later. I know I sound wishy washy but, now people are not looking. Prices will trend down as those who need to sell will lower prices. Later, when the panic passes, (summer, late summer, fall???), demand will rise, as will prices.

    Spring selling will be delayed as mentioned above.

    I do not think there will abundant supply of homes because I do not think there will be masses deaths from the virus. Some? Yes. Mass? No.

    ................. I admittedly have no knowledge about anything I just said. Just postulating.

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  • hightower
    replied
    Originally posted by Brains428 View Post
    I'm putting on my "this is fine" meme and building a house. Could be delayed by all the quarantines, stops on production of who knows what, etc etc. I'm more worried about securing a one time close construction loan to lock in a low rate.

    That meme could be the official meme of 2020 and this whole pandemic situation, haha, nice find

    Leave a comment:


  • Jaqen Haghar MD
    replied
    Originally posted by CordMcNally View Post

    Don't you worry. I'll give you a standing offer of $1,000. You just let me know.
    ... And the day I sell to you will mark the beginning of the biggest, fastest housing bull market in history.

    Leave a comment:


  • Brains428
    replied
    I'm putting on my "this is fine" meme and building a house. Could be delayed by all the quarantines, stops on production of who knows what, etc etc. I'm more worried about securing a one time close construction loan to lock in a low rate.

    Leave a comment:

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