I’ve been speaking with various clients over the course of the last few days and have noticed that people have started to get really hesitant with all the news going around about COVID19 and the resultant stock market crash. I’d like to make this blog/video for all of you to know my thoughts and predictions for the San Diego real estate industry and nationwide for the next few months down the road.
The U.S. becomes The Safer Investment
This virus is taking a toll on all the markets globally. China; one of our biggest investors has been adversely affected. Italy and Europe are also experiencing an unprecedented increase in daily cases and deaths. The outcome of this over time will be a lot of investors putting down their money here as it’s a safer investment. This will result in more demand for our market which will in turn cause real estate prices here to go up.
Commercial Real Estate
I’d advise you all to consider buying residential real estate over commercial properties as businesses are likely to take quite a hit as a result of the virus. Smaller businesses are likely to close for good and larger ones will limit their investment and growth by staying in their niche and not experimenting too much.
As the stock market has taken a hit, people are likely to put their money in real estate instead. When that happens interest rates tend to go down. We’re at the lowest point we’ve been at in years at 3 and a quarter interest rate. This is the perfect time to take advantage of market rates. San Diego real estate which is already built out with not much room for further construction becomes a tangible asset that will appreciate.
Here are the potential downfalls that could occur with our market
Inventory will Remain Low
A lot of people won’t be willing to relocate during these tepid times and that’s going to result in housing inventory to remain low. Though we’re already seeing an increase in buyers we don’t have the supply to match it.
Depending on how long the virus continues to affect our productivity and mobility as well as our death rates, our jobs are likely to take a hit. Large amounts of layoffs could affect the real estate market adversely.
I do however, see the positives outweighing the negatives here. As an investor I’d recommend you refinance your existing properties as well as keep aside money for further investment at the right time. If you guys have any further questions regarding the way it’s going to further impact San Diego real estate or anything along those lines, feel free to reach out to me using the information below.
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