Coronavirus is reshaping the global economy and the real estate market is no exception. Because of the virus, real estate investors are eager to understand both how to ensure their investments are safe and how to invest in new properties efficiently. For a better idea of how the coronavirus is impacting the real estate market, along with how investors should best proceed, continue reading.
Fewer homes being bought
A Pew Research Center survey released in April found that 43% of American adults say they or someone in their home has lost their job or taken a pay cut, which is up from 33% in the second half of March. This statistic helps explain why home sales have fallen by 8.5% during March.
With less homes being sold and most Americans not in a state to purchase a new property, real estate investors could face less competition in the housing market. So, an investor eyeing a property currently on the market may find that now is a good time to bid due to the decrease of competing buyers.
Lower interest rates
As of April 23rd, the average interest rate on a 30-year fixed-rate mortgage is 3.295%. For comparison, the rate was 4.39% on that same day one year ago. The current rate shows we’re experiencing lower than average interest rates on mortgages. So, if your income hasn’t been affected and you’re looking to invest in real estate, now might be a good time to snatch an interest rate that’ll save you money in the long-haul.
Stay-at-home orders make online auctions the safest bet
A core safety measure during this pandemic is to abide by social distancing protocols stating that people should:
● Stay at least 6 feet away from one another.
● Not gather in groups.
● Stay out of crowded places and avoid mass gatherings.
With these orders in place, investors are confused as how to best proceed. Thankfully, online auction platforms like Hubzu make it easy for investors to browse, bid on and buy properties entirely online.
Some properties marketed on Hubzu also are equipped with self-showing lockboxes that allow potential buyers to tour properties on their own without anyone else present. Virtual 3D tours are also an option for some properties and gives buyers the ability to tour homes entirely online. As the pandemic continues, buyers and sellers will find that online auctions, self-showing lockboxes, and virtual tours are necessary to facilitate a safe environment for real estate investing.
Hubzu is with you every step of the way
The current coronavirus pandemic has heavily affected every part of life for Americans and for the world at large. People are trying to adjust to the new normal and want to know how real estate has been impacted. With less Americans in a position to buy, real estate investors are facing fewer competitors than ever along with the lowest interest rates on mortgages we’ve seen in years.
In order to make the most of the opportunity, investors should look towards online auction sites like Hubzu that allow them to browse, bid and buy properties entirely online. The best part is they’re able to tour properties in person all on their own with self-showing lockboxes or tour homes online with virtual 3D tours. To begin browsing properties, visit Hubzu now to view investment properties all across the country.
For additional resources to help you navigate the current real estate market, please visit our COVID-19 resource hub by clicking here.
Ready to sell your property? Get started with Hubzu’s Signature Seller auctions.
