HOW CORONA VIRUS WOULD AFFECT THE
SOUTH Florida real estate market is a big mystery. So far, the real estate
market has been moving good. Even though few deals have been cancelled but most
of the transaction have been closed. However certainly a lot of people and
businesses will have a hard time paying for rent, mortgages and association
fees because of all these Quarantine’s affects. In south Florida most renters
spend over 40 percent of their income for their rent, so people who have lost
their job or their hours have been cut down , they will not have enough money
to pay for life necessity such as food and medical care, let alone pay for
rent. The only good news is if they can’t pay the rent, they cannot be evicted
since all the court is closed and we are all quarantined. As for homeowners,
about 70% of them in south Florida have mortgages on their house which now they
can apply for loan deferment through their lenders.
Since the interest rate is really
low, it is a great time to shop for lower interest rate refinance. 30 year
mortgage rate is never all time low.
To purchase a new house, even though
some sellers took their property out of market in order to practice social distancing,
there are still ways to check out a property and follow the rules and safety.
For example if the house is vacant or owners agree to leave the house at the
time of showing. Also the technologies been a great help for example virtual
showing or virtual open house been a big hit.
Personally I don’t think the south Florida market will have another
recession because of covid-19 because
there is a shortage of single family house in south Florida. Also Florida being
one of the few states with balanced budget I think it could easily bounce back
and hopefully all goes back to normal.
One of the advantages for sellers is
that they would know the buyers who prospect the property are serious because
before a lot of people who came for showing appointments it was neighbors who
came to check out the neighborhood, bored people , etc. but now whoever shows
up during the corona virus must be serious. Second since people stayed in their
current residence longer they now have a better understanding of what they are
actually looking for.
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