The Status of Real Estate in These Times - Gebah Kamara

Latest reports show the business is still on the move. Capital is still floating around. The economy is rising even if the interest rates are weak. The question most of us are wondering, "What's going to happen in the future?" A lot of uncertainty, but surprisingly the future looks promising somehow and less about the market plunging down. Nonetheless, there may be significant market failures after today, lower customer demand, declining GDP, lower wages, less jobs, lower pay. However, that does not completely disrupt the market.

What Will Happen Next?

The housingmarket is currently growing relatively slowly but steadily. This is largely because of the current situation facing the world. With the steady flow of induction of the stock market, the elections are coming up, and the forbearance due to the CARES Act as stated.

Because the Government has provided forbearance through the CARES Act, many homeowners will decide whether to sell or not and since they can still apply for an extension after the 6 months. Hopefully this does not lead to rising surplus in the housing market. And as we know, if there are fewer demands than supply, the earnings would be lower.

Less earnings because unemployment is high and those who are unemployed will have two choices, either sell their homes by October or re-apply for an extension after the 6-month forbearance.

This is another example that because there would be an increase in the number of homeowners putting their homes on the market, then it will rise, and the prices will continue to decline and there will be no profits. However, those selling would still search for a new place of their own if they could settle in rural areas at the same location but most likely in the suburbs or better.

What To Do Next?

Sellers, brokers and realtors will start seeking interested buyers who are willing to gamble in flippers who purchase low-priced properties and wait for the right time to sell with profits as early as now. It's safer to have extra sellers because sooner a buyer can appear — these are those that have selected to reduce their size because of unemployment.

Another tactic is to save on the income until an acquired property has been sold, then re-schedule the transaction until after the extended forbearance period. As already stated, there is a possibility that those who applied for the extended 6 moths will end up selling the house. And if this situation occurs, it is likely that the hold-up funds will be used well. Indeed, there will be a very good mix of stocks which means lower price and the funds are available.

For buyers, on the other hand, resolutely consider pricing the properties in the catalogues. The quicker it sells at this stage the better the income you get. And when the economy is in a potential recession, it becomes more critical that pricing is very competitive and that the outlook is justified. If this occurs, tracking the demand becomes more complicated.