Real Estate Market During a Pandemic
Posted by admin at August 19th, 2020
Its difficult to wrap our heads around what is going on in 2020. The stock market is up, the unemployment is at 10% and the global pandemic is still harming our well being.
The Real Estate market has not seen significant losses if any at all. In Los Angeles pricing is still at all-time highs for the majority of the properties. There are a few reasons. I would go on a limb and say that the main reason is that there’s a lot of involvement and assistance from our local and federal government. The federal government has interest rates at all-time lows. Meaning the interest they charge banks to borrow money is at near 0%. Therefore when you apply for a mortgage from these banks they are able to give you a 15-year loan at 2.5% or a 30-year loan at 3%. So why rent when you can own and pay a little higher mortgage than you would have from renting?That’s the key to this situation. There’s many Buyer’s on the hunt as first-time home-buyers. The banks are taking longer in processing and being even more selective when approving loans. If you are unemployed they won’t even talk to you. But for the 90% or so that are still employed, buying Real Estate now is still a solid investment. As long as you can afford the monthly mortgage payments, even if you lose your job and have a “rainy day” savings fund, then you should be in an excellent position.
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