The new normal just proved how resilient the real estate market can be. Even if the pandemic drastically changed the way people live, there is one fact that remains. It is no matter what the economy is, real estate is the go-to investment option of many investors. Many people understand that properties will forever be a relevant investment, especially during the pandemic.
The need for housing only continues to increase as more people are turning to real estate investments. This is not limited to real estate investors trying to grow their wealth with the help of real estate. This also pertains to regular consumers wanting to buy their own homes and tenants trying to improve their living space.
Real estate investor, homebuyer, or not, it pays to keep an eye on the latest real estate trends. The following are five things we can expect to see in real estate in the post-pandemic world and beyond.
Fixing and Flipping Will Continue to Be Profitable
There is enough evidence that the fix and flip strategy will continue to stay profitable in the post-pandemic world. For one, more people continue to look for houses they can buy despite the rising house prices. Even if many people lost their jobs during the pandemic, many are starting to get back on their feet and are starting to take interest in buying a house instead of renting.
There are also some homeowners who will be having a hard time paying back their mortgage after the mortgage forbearance comes to an end. This may not be big enough to cause a distressed real estate inventory, this will give flippers more supply to invest in.
Flippers are not merely fixing the fixer-upper homes they are buying. They are actually investing in certain home improvements that will surely improve the real estate’s value. This way, they get to increase their return on investment.
They are investing in things like improved outdoor living space. Flippers recognize the need of today’s buyers and tenants when it comes to better landscaping and improved yard space. They are giving in to consumer’s need for better outdoor space to provide a more fulfilling quarantine life.
More people are also into kitchen and bathroom remodels. They are investing in touchless water fixtures, energy-efficient appliances, and sustainable bathroom accessories and supplies. With consumers’ obsession with health and hygiene, it only makes sense that flippers would invest in such projects.
Houses Selling at Record Speed
There are many reasons why houses are being sold faster than ever before. For one, there are more buyers than sellers in the market. With the limited number of houses listed for sale, buyers are rushing to get their mortgage pre-approved and their offers accepted by sellers.
There’s the fact that the homebuying process is now easier than before. With a quick online search, you can already find hundreds of properties being sold online. It is now effortless to apply for mortgage since banks and lenders are now accepting online applications. Even the way buyers are scheduling site visits is effortless.
Numerous sellers and real estate listing sites are giving buyers the ultimate house-hunting experience through a series of improved product listings. Virtual tours are readily available to buyers. This reduces their need to drive all the way to the listed home’s location just to get a better look and feel of the property.
Don’t forget about home inspections. Many buyers are skipping this important step as a way to outbid other buyers. Those who are into home inspections, they can simply wait for the home inspector’s call and receive the result via email.
Housing in Suburban Locations Are Highly in Demand
More buyers are looking forward to leaving their life in the city in exchange for the great suburbs. While some are not making drastic changes by choosing houses sold just outside the city, many are making the switch due to how the pandemic affects jobs.
More companies are now allowing remote work while others are offering remote job opportunities to different professionals. Since one no longer needs to find a house in the city just to make it in time for their nine-to-five jobs. But now that we are living in the new normal, staying in less populated areas where house prices are more affordable, and where we can still take on remote job opportunities, many are choosing the suburban life.
These are but three real estate trends we can expect to find in the post-pandemic world. We can expect houses to sell fast, more buyers to flock suburban listings, and the demand for fixer-and-upper homes will continue to rise. Knowing what the trends are likely here to stay will make it easier for us to make the necessary decisions and preparations for a better real estate investing experience.