Based on current economic indicators, it’s safe to say that changes are on the way. But not all changes are necessarily bad. Market data shows that home prices are still rising, if very slowly. Growth in the first part of 2020 was less than 1% but there have been improvements showing since then. Slower home price growth may be good news if you are ready to buy another rental property but may slow the appreciation of your property values on existing properties. The real estate market continues to thrive in these extraordinary circumstances as evidenced by the continually growing home prices.
Property owners are wary of a repeat of the 2008 housing market crash. They are afraid that the high unemployment rates might bring about a lot of foreclosures as people stop paying their mortgages. But most experts do not see another real estate market crash coming. On the contrary, they agree that property equity is likely to decrease as buyers nationwide continue to show interest in both existing and new homes.
Another unexpected change this year has been multiple reductions in mortgage interest rates. To prevent a housing market crash, the Federal Reserve has slashed mortgage interest rates to historic lows. These low rates offer a lot of opportunities for the Plano rental property owner. These can range from refinancing existing loans to lowering your monthly payment to borrowing for your next property at very favorable rates. Because of these low rates, people have rushed to secure financing and lenders. Seeing the high demand, they are tightening their lending criteria. High demand also means longer turnaround times in terms of processes, such as inspections and appraisals. As long as you are patient and have a lender on board, you could still take advantage of current rates.
Act now because although experts say that a housing market crash may not be expected, another recession is almost certain. Although the stimulus funds given by the federal government may have delayed the worst of it, such a fix is still temporary. As conditions worsen, and since the coronavirus outbreak still leaves a lot unknown, industry experts still don’t know COVID-19’s effect on the real estate market next year. Many real estate professionals are adapting to pandemic conditions by using digital technologies in new ways. With virtual sales, online property tours, and Zoom consultations in their arsenal, real estate brokers, mortgage lenders, and property managers are using new tools to keep the market moving forward.
These new tools are the new normal in the real estate market. Use these to increase efficiency and energy in real estate investing. Plano rental property investors have to be on the alert for opportunities to streamline and modernize both your investing and your property management process. Contact us today for help on how to do so, so you can successfully make it through whatever the future may bring.