Today on the Real Estate Lab Podcast, we don’t have any guests, but I’ll be sharing something really interesting with you. We’re going to dive into the question, “is it time to sell?” Recently I’ve come across an article written by Jeff Andrews, and I’ve put this episode together to give you my opinion on the matter. Stay tuned, and enjoy!
Unemployment and Unpaid Rent
With our favorite stores closing down one by one, the people who work in those retailers live in apartments that are now mostly unable to pay rent. However, most states have implemented a moratorium where you cannot file for eviction. Recently, I went out with a group of landlords, property managers, and attorney lobbyists in Colorado to fight for a bill entitled, COVID Relief for Tenants and Home Owners. This bill would place a moratorium on demanding any rent in court through May 2 of 2021. The landlord would still have to go through a two-month eviction process, which means that you couldn’t even get your house back until late June of next year.
Supply and Demand on Home Prices
Another factor you have to pay attention to is that the prices are still rising. When we hear of a massive unemployment rate, we think people would start selling their homes, right? Yes, but we still don’t know when that will happen. The government has already stepped in and put a lot of measures to help with that issue. It all boils down to supply and demand on why home prices are still at a high point. Because we’ve been in a hot market for such a long time, many buyers are still shopping with only a few listings to go around. Home sellers actually took their listings off the market because of the uncertainty!
Waiting for the Dust to Settle
So what should we do? Now, this is just my opinion, so take this with a heavy grain of salt. Even with forbearance delaying payments on mortgages, unless the Coronavirus miraculously gets a vaccine this early, most people will still, unfortunately, be unable to pay for their homes. What does that mean? I’m not here to hope for people to lose their homes or wish ill on any person. But personally, if you’re buying houses for cash right now, I’d wait and watch the dust settle. Be ready and prepare yourself for whatever is going to happen to this market. If nothing happens, a few months later, you could still go out and buy houses for cash. However, if the market tanks and you already bought it, you may lose money. Real estate is still one of the best vehicles out there to create long-term wealth, so ensure that you’re making wise decisions.
Outline of the Episode:
- [01:27] Is it time to sell?
- [02:11] The businesses that closed down. What does all this mean?
- [05:02] Why are prices still rising? We have been in a scorching hot market for a long time!
- [08:24] How is this any different from 2008?
- [11:08] Forbearance is just a delaying of something inevitable.
- [15:42] Preparing for what is going to happen in the market.
- The economy is tanking. So why aren’t home prices dropping? – Jeff Andrews
- 24 Hour Fitness closed down – CNN
- H&M speeds up store closings in 2020 and shifts focus to online shopping – Business Insider
- JC Penney could join a growing list of bankruptcies during the coronavirus pandemic – CNBC
- Over 4 million Americans are now skipping their mortgage payments – MarketWatch
Connect with Vee Khuu!