The year 2020 wasn’t a walk in the park for any business, even for the real estate industry. The industry exhibited a drastic shift and imbalance with the ratio of the buyer to the seller which has leaned towards the rise in demand. People have now chosen to invest in real estate to either kick start their business or transfer to a safer community far from the pandemic.
With that being said, what’s in store for the latter half of the year for both new and seasoned real estate investors?
#1 The Demand For Housing Will Heighten
Housing will remain robust as millennials and baby boomers begin to invest in properties to start their respective families. The same generations would also take advantage of the rising number of homeowners who will fall behind on their mortgages, and declare their respective homes as distressed properties leading to sales. Therefore, we can guarantee that towards the end of this year, the industry can suffice the need in providing buyers their respective properties.
#2 Refinancing Will Remain Evident
If you haven’t noticed, the majority of online transactions or the shift to make transactions digital are becoming significant in today’s society. In line with this advancement, mortgage payments become more convenient and quick, leading to an instant experience for the masses closing their dues before their respective due dates. This would also mean that these real estate investors will be prepared to refinance, build their equity, and purchase properties.
#3 Substantial Yet Constant Increase In Foreclosure
As expected, towards the end of the year, mortgages with delinquent payers will be acquired by the bank contributing to the rising number of properties that would be available for acquisition.
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#4 Remote Work Can Lead To Purchasing New Homes
Over the months, we have seen a lot of people make home purchases that rely on spaces to create and or renovate home offices. That’s because as we near the end of 2020, job offers that remotely hire employees are thriving alongside the migration of online distance learning. This connotes the idea that a home with space for either an office or classroom becomes a need.
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#5 Technological Advancement Will Remain Persistent
One of the predictions as we will encounter is the continuous advancement in technology. The real estate industry is adapting to this approach as home improvements and sales migrate to the digital atmosphere, making it easier and convenient to transact and cascade business opportunities.
#6 Virtual Tours And Visits Will Become Feasible
When purchasing a property for sale, as a real estate investor, house visits are a need. This is to ensure and guarantee that you are getting your investment worth. In line with the technological advancement that we are experiencing, it is forecasted that virtual visits will be feasible and accessible to the masses.
Not only can virtual tours become accessible for real estate investors like you, it is also an avenue for investing in properties without the necessary need of physically visiting. Check out our blogs on how virtual tours are the new trend.
#7 A Slow Trend In Commercial Real Estate Sales
As mentioned, since remote employees and technological advancement thrive in today’s society commercial properties will deem itself unnecessary. Employers will insist or favor remote work for the safety of their respective people, with that being said, the rise in commercial vacancy is inevitable.
#8 Suburban Living Will Become A Trend
It’s quite evident that the majority of people living in the city have chosen to migrate to suburban communities to avoid contact amidst the pandemic. This has shown a sudden growth in sales in the said communities. It is also forecasted that the number or rise in sales will grow towards the end of the year to provide the demand as buyers lean towards moving out of the city.
#9 Properties With Fitness, Amenities, and Space Will Continue to Thrive
Social distancing is one of the main factors as to why properties and communities that provide a huge amount of space show great promise in the market. People will want to purchase properties or even rent places that can assist them in maintaining a balance between their mental and physical health. This can be categorized into properties that offer spaces for home-gyms and alike.
These predictions will not dictate the months to come, however, it does give us an overview of what to expect in the real estate market. Consider these predictions as an assistive guide as you decide either improving your home and lifestyle or as you expand and grow in the business.
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Disclaimer: The blog articles are intended for educational and informational purposes only. Nothing in the content is intended as legal or financial advice.