The Real Estate Market Today
Today the United States real estate market is booming. Due to the Coronavirus pandemic interest rates have hit historic lows and as a result sellers are listing their homes for record prices, but this trend may be coming to an end. When the pandemic hit, moratoriums on mortgages were rolled out nationwide, and as a result sellers were exempt from mortgage payments for the ensuing months. Just as the mortgages came due in the mortgage meltdown of the 2000s, these moratoriums are set to end. As banks and mortgage companies expect to have their frozen mortgages satisfied, Real estate agents and investors expect this mass mandate to result in record foreclosures as many are still out of work due to the pandemic. Chief economist for Keller Williams Realty, Ruben Gonzalez, said the following on Money.com “Foreclosure rates in 2021 are going to depend a great deal on what percentage of homes are still in forbearance at the end of the first quarter of 2021. ” Rising unemployment may result in many remaining in forbearance during the early quarters of 2021, leading to the real estate crash so many fear.
What this means for Sellers
Even as the outlook as the real estate market in the future looks grim, there is still an upside to this amount of uncertainty. Inventory and interest rates remain at an all-time low which means buyers are a dime a dozen, especially cash buyers looking for investment properties. With the demand of the retail market remaining so strong, investors continue to pick up homes, paying more and more money for them. Selling properties to investors off-market is becoming more and more appealing to sellers as they do not have to list their property and deal with agent commissions, concerns about under appraising, and uncertain buyers who are prone to backing out during their due diligence periods. With uncertain times often comes great opportunities and shying away from the open market may allow sellers to sell their home for a number they are happy with instead of leaving it to agents who oftentimes cut out a profit with commissions and due diligence repair lists. If you find yourself in a situation to sell but are off-put by the uncertain economic outlook and everything that goes into listing with an agent, give us a call. We will be happy to answer any questions and make you an offer that maximizes your profits without entering such an uncertain real estate market. Call Helpful Homes today at 336.829.7400 or fill out the quick form on our sire, we are here to help any way that we can.