We’ve all heard the term “buyer’s market” describing residential real estate (where the supply exceeds the demand or there is more than six months of supply on the market). We are certainly in the midst of a buyer’s market in many areas of Houston with the disruptions created by COVID and the oil industry situation. Adding to the challenges, real estate lenders are moving slower than usual because they are overwhelmed with re-fi’s, SBA loans, home equity loans, and underwriters working from home. But real estate will likely be one of the driving forces of the recovery so it remains important to all of us on a national level, and there is an upside for some forward-thinking investors. The consensus opinion among accomplished realtors I have surveyed is that we are in a “move up” market. This is good news if you are thinking of upgrading and you are lucky to be financially stable despite COVID. Sellers tend to worry about locking in a loss in a down market. But if prices are down 10% and you sell your $300,000 house for a loss of $30,000, but you buy a $1,000,000 house for $900,000, you just gained $70,000 in potential equity. There are fewer homes on the market and fewer buyers so there is less competition driving prices up. Market uncertainty creates bargain price opportunities, so conditions for the best deals will diminish as the economy normalizes. Therefore, I recommend not waiting too long to investigate “moving on up.” I am looking for myself and would be glad to share my research with you.
walter@walteraymen.com
Cell/Text 713-542-5788
walter@walteraymen.com
Cell/Text 713-542-5788
