With the pandemic coming to an end, investors, buyers, and renters are eager to see what’s coming next. This past year has been nothing short of a roller coaster if you are involved in the real estate market. The demand is the highest it has been in years, and that is putting a large toll on prices. The question of “ownership or occupancy” is running through many minds during this time. People weigh the pros of cons of investing, renting, and buying, and there is so much uncertainty that no one knows what to do next during this post-covid time.
The investment market has risen dramatically since mid-2020. People are wanting to move now more than ever, and investors are taking a slight hit from it. Due to the economic recession and unemployment being at a high, rent payments are becoming more frequently missed. Because of Biden’s American Rescue Plan, some researchers and investors believe rent payments are not being prioritized due to the lack of consequences. This is taking a toll on investors and owners who have mortgage payments on their properties.
On the other hand, some researchers are confident that now is the best time to invest in real estate. Right now, interest rates are at an all-time low. Meaning, your purchase can be larger, or you can keep the extra money you save in your pockets. Also, unlike stocks, the real estate market isn’t as delicate. The stock market rises and diminishes daily, where the real estate market is more stable. The market is booming post-covid and is only predicted to keep rising.
With city life adjusting and work-from-home options growing post-covid, the suburbs are suddenly becoming the hot spot location people want to move to. In certain states, big-city home prices are decreasing, while smaller suburban home prices are flourishing. Before investing in a property, it is crucial to perform research on the surrounding area. You’ll want to be sure there are schools, low crime, and in an area where appreciation is likely.
Buying a Home In the Current Real Estate Market
Post covid, workers are looking to move into bigger houses to make room for their permanent home office. This makes the market for home buying more competitive. All across the United States, the supply of single-family homes is low, but the demand is skyrocketing. In late September of 2020, the average home was on the market for only 16 days, which is 50% lower than the 2019 average, which was 30 days. Due to the low supply, buyers are becoming more and more cutthroat by making cash offers much higher than the asking price. Normally this would guarantee the property, but lately, there has been a growth of bidding wars.
Although homes are selling fast, there are many downsides to buying a home post-covid. The median home price rose roughly 17% nationwide in the past year and a half because of the demand. Property taxes are directly correlated with home prices, causing them to rise as well. This takes a heavy toll on current renters who are wanting to move into a larger home. With home prices, rental rates, and property taxes rising, it becomes difficult for renters to save extra money for a down payment, so more and more renters are finding themselves unable to move out of the situation they are in.
Renting a home during and post-covid has not been the easiest walk in the park. Rent prices are constantly rising due to increasing costs for the owners, and property value increasing across the country. This circles back to renters unable to move due to their inability to save extra money during this pandemic. The money that renters could be saving for a down payment is now being circulated back into their increased rent payment. Another struggle with renters is the probability of a bidding war. Chances are renters do not have those extra thousands of dollars to put towards a house to win the war, so they end up having to back out and start the process all over again.
No matter what situation you are currently in, post-covid life has certainly been an adjustment. Some are thriving, while some are struggling to pay their bills. Before you rent, sell, or buy, look around your area and see how other properties are going. For example, if the same house has been for sale for a month, maybe hold off until things get moving. On the contrary, if a home gets rented out in less than a week, maybe now is a great time to list your home for rent! The real estate market post-covid is all about reading trends and deciding the best time to make a move. As mentioned before, the real estate market is only predicted to rise for now!
If you are looking to move into Gwinnett County, contact us today and we will help you find the perfect rental home! If you own a home and would like to rent it out in Gwinnett County, reach out to us and we will be glad to assist you in the process!
*All data and information have been pulled from reliable sources. Numbers are not exact*
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.