There have been lots of predictions about real estate and COVID-19. The pandemic left many uncertainties especially in businesses, and real estate agents are questioning the market. This is all you need to know!
Like every other sector, the real estate market has had its fair share of the uncertainties that came with the global pandemic. Since the beginning of the pandemic, there have been lots of speculations about the real estate market and the financial markets at large. Over a year after, we are still uncertain what the future holds for the real estate market. In this article, experts answer 5 FAQs about real estate, plus a bonus.
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Is the property market open?
Absolutely! In the early days of the pandemic, anyone would bet that the lockdown and financial crisis would spell doom for real estate. Alas, the opposite is the case today. In fact, the real estate market is doing so much better than it was before the pandemic. Reuters confirms that house prices have hit its all-time high since 2004, thanks to the pandemic.
Time to buy & hold or buy & flip?
A close look at the UK property market and COVID-19 will reveal that the unprecedented hike in house prices is largely due to the tax cut chase. This isn’t going to be around for much longer. So, if you have something to sell, this is definitely the time for that. On the other hand, experts predict the price hike might linger a bit due to decrease in supply, hence, buy & hold might work out at the end of the day. Your goal will determine the best move on the table.
What happened with mortgage deals?
As opposed to the miraculous effect on house prices, the mortgage deals have been on free fall since the pandemic. However, the silver lining is that good rates are available now more than ever. So, if there is ever a good time to jump on this, this is your cue. It is so much better for those with a big deposit. Don’t sleep on this!
Has COVID affected house viewing?
Certainly! COVID-19 affected virtually everything, including how we work and conduct business. One of such notable changes is the online house showing now practiced across the property market. Although the market is open, people are still concerned about the virus. Therefore, real estate agents have adopted a new house viewing method. Now, you don’t necessarily have to meet. You can seal the deal from the comfort of your home. Keep in mind that some buyers may ask to meet in person. Be prepared.
House price hike; is it a bubble?
Contrary to the negative real estate and COVID-19 predictions, we have seen a steady rise in house prices in the past year, however, we must admit that this hike is a result of the tax relief. This means that once the stimulant is off, we could all realize this was a bubble all along.
It is also important to note that, while the hike isn’t sustainable, low supply from real estate agents might keep the price at a certain high for the foreseeable future. But that isn’t a sustainable rise either because life is gradually returning to a new normal and properties might flood the market once more.
How to keep your head above the waters
Many businesses are struggling to stay afloat in these trying times. This is true for real estate businesses too. Good advice here is to be twice as careful with investments. Double-check every investment deal and avoid impulse decisions. Also, don’t be too careful that you miss opportunities. Leverage every opportunity you can get, especially the current price hike.
The real estate market has been through highs and lows in the past decades. Luckily, the real estate and COVID-19 face-off isn’t as bad as we thought. We are positive this would be another interesting statistic soon. Meanwhile, be sure to watch market trends carefully as you navigate your business through the pandemic. Good luck!
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