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We’ve collected the most relevant and informative news stories, data and resources for real estate investors and put them all in one place. Stay safe and stay informed!
According to early results from a recent survey of real estate investors conducted by New Western, nearly 20% of investors said they are increasing their acquisition activity and 22% said their activity remains unchanged. 33% are acquiring properties but at a reduced activity level, whereas only 21% of investors stated that they are pausing activity due to COVID-19.
According to a recent Bloomberg article, Federal Reserve Bank of St. Louis President James Bullard expects the U.S. economy to recover strongly in the second half of 2020 if the government and businesses respond forcefully to the coronavirus. “There is no reason it can’t come back in a ‘V’ shape,” Bullard said. “I know it’s become popular to say that is not going to happen. I think it can happen.”
Officials have also pointed out that the response to the current crisis has been put in place far more quickly than the response to the 2008 financial crisis. “We are going to act as soon and as aggressively as we can,” said Atlanta Fed President Raphael Bostic, “One thing we learned coming out of the Great Recession was that Fed policy is most effective if it goes big and it goes early.”
In a recent blog post on BiggerPockets. Amanda Han, CPA and real estate investor, spells out how the $2 trillion relief funding can benefit investors. Covering everything from tax extensions and stimulus checks to changes in retirement accounts, this is a must-read for every real estate investor.
No one has a crystal ball telling us exactly what the future holds, so Forbes went in search of answers from five of the country’s top real estate agents. They discuss everything from what they think the housing market and economic recovery will look like after COVID-19 (they’re optimistic) to what design trends will emerge as a result of the shift to a “new normal” (think tricked out home offices and outdoor spaces).
Peggy Olin, President and CEO of Miami’s OneWorld Properties, summed it up well, “This is not 2008. We are in uncharted territory with the coronavirus. But the Federal Reserve is taking incredible steps to preserve our economy. This is more like the market after September 11th. It was unexpected. It came on quickly. It scared us. And people just froze. The same thing is happening right now. The corona pandemic came on equally as unexpected, stopping the economy and creating similar attributes. During that recession, the value of real estate went up. I don’t think this is any different.”
The results from the Mortgage Brokers Association’s weekly survey are in. Mortgage loan application volume and the Refinance Index both increased compared with the previous week. “The 30-year fixed mortgage rate decreased last week to the lowest level in MBA’s survey at 3.45 percent. The decline in rates – despite Treasury yields rising – is a sign that the mortgage-backed securities (MBS) market is stabilizing and lenders are successfully working through their lending pipelines,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.
Although the purchase index was down slightly due to the disrupted spring homebuying season, “the purchase market is still expected to rebound,” Kan stated, “as long as the public health measures to reduce the pandemic’s spread are successful and result in a broader recovery.”
Disclaimer: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.
