Spring is traditionally one of the strongest months for the real estate industry but, due to COVID-19, which caused many mortgage rates to go sky-high, the current economic climate has put off the momentum of this market for the next few months. The news about COVID-19 caused many Wisconsin mortgage lenders to lower their rates by up to two percentage points. However, despite this, it is expected that many more rates will go up once the fall months begin to roll around again. With all of these factors in mind, what can an investor looking for a great real estate property do to get on track?
How COVID-19 Has Affected The Real Estate Market In Wisconsin
The outbreak is also affecting the infrastructure and the healthcare system of Wisconsin. This has resulted in a surge in demand for property that is normally in short supply and has made it difficult for investors to find good deals. Housing prices have been rising, so the best way to sell your house right now is by selling it as is for cash and let real estate firms like Cream City Home Buyers do all of the hard work.
Demand Will Remain High
Demand for real estate is expected to remain high for both existing properties and the construction of new properties. Many real estate investors in Wisconsin have already seen their prices soar upwards. The demand for houses will probably stay up even after the supply starts to run out.
A Decrease In Supply
With increased demand, more property will be available for sale, and investors may start to see a decrease in supply as companies cut down on over-capitalization to cut down on their costs and increase profits. As the situation worsens, new homes could become even more difficult to obtain and become even more scarce. Investors need to take into account that a housing market may experience a sudden drop in supply as a result of the financial crisis. This could lead to an increase in demand, as investors try to secure a piece of the pie left behind by the collapse of the financial system. However, investors would also have to wait to see how long the drop in supply will last before investing in housing stock.
Housing Stock Becomes More Valuable
For investors with limited knowledge of the health and financial markets, and a desire to invest in the housing stock that is stable, there’s always the option of buying housing stock that is already under construction. Investors can purchase these units at discounted prices, and then wait to see if the market will stabilize or to take advantage of lower prices in the future.
Those who are interested in purchasing housing stock should make sure they have adequate knowledge of the local market in their city. Some cities’ housing markets are already well established while others are still waiting to develop. Researching and comparing housing stocks prior to investing is important since this is one of the most important decisions investors will make for the coming year.
Housing Prices Rise
If a housing market is expected to experience a fall in supply, then investors may experience a sudden spike in prices during the period of the financial crisis. Investors should not worry too much about this spike because a sudden surge in the price of housing stock will generally be followed by a drop in prices when the market stabilizes again.
The Market May Remain Unstable
It’s important to note that investing in housing stock in the coming years will depend largely on whether there will be a financial crisis or not, and on the size and level of economic instability that will occur as a result of the pandemic. For instance, a large drop in demand would likely lead to a drop in price, while a large rise in supply may lead to a rise in prices. Investors should therefore take these factors into consideration before making any final investment decisions.
Don’t forget to consult with a mortgage consultant if you have a large amount of money to invest and you need to know exactly where the housing market stands. For example, a mortgage consultant might be able to help you in figuring out what mortgage payments you can afford, whether you should refinance your current loan or go with a new lender, and whether you can afford to pay more down payment for a house. A consultant will also be able to recommend the best time to purchase a home since prices have fallen in many markets and are expected to continue to fall in coming years. If you’re still not sure about anything, consult with a professional agent.