The question
most of us ask, "What's going to happen in the future? "A lot of
speculation, but oddly, instead of the market plunging down, the future somehow
looks bright. Recent reports indicate that the market is still moving. There's
always capital flying around. There is a growing market and low interest rates.
Nevertheless, after today, there could be a major market failures, decreased
consumer demand, declining GDP, lower income, less jobs, reduce pay. But this
is not going to totally disrupt the market.
The Forecast
Since the government provided forbearance through the CARES Act, a lot of homeowners will contemplate whether or not to sell, because after the 6 months, they can still file for an extension. This will hopefully not result to an inventory in the housing industry. And as we know, if there are less demands than supply, there will be lesser earning.
Presently, the housing
market is moving fairly slow but steady. This is mainly due to the current
situation that the country is facing.
With the continuous flow of inducement of the stock market, the elections
coming up, and as mentioned the forbearance because of the CARES Act. Although
the unemployment is high and those unemployed requesting for an extension of
the after the 6-month forbearance will have two options-- either sell their
houses by October or they will re-apply for an extension. This is another scenario that if there will be
a surge of home sellers placing their properties in the market and it goes up
and the prices will start falling and there are no earnings. However, those
selling will still look for a new place of their own, whether in the same place,
but most likely in the suburbs or better, they might settle in rural areas.
The Next Steps
As early as now sellers, agents and realtors should start finding motivated investors who are willing to invest on flippers who purchase properties with low prices and wait for the right timing to sell with profits. It is better to have more sellers, because sooner or later a buyer might show up — these are the ones who have chosen to downsize due to unemployment.
Another
strategy is when an invested property has been sold, conserve on the profits,
then re-schedule purchasing until after the period with the extended forbearance.
As mentioned, there is a probability that those who applied for the extended 6
moths might end up selling the property. And if this scenario happens, the
held-up funds may be put into good use. A very good combination indeed, there
will be inventory which means lower prices and the funds are available
On the other
hand, for sellers consider pricing the properties in the catalogues
uncompromisingly. At this point, the quicker it sells, the nicer the profits
you get. And while the economy is in a possible recession, it becomes more
important to be very aggressive in pricing and to justify the outlook. If this
occurs, it's more complicated to track down the demand.
Gebah Sekou Kamara was born in Liberia West Africa. He obtained his early education in Liberia. He attended Monrovia Centre High School and the A.M.E Zion Community College in Liberia. Gebah Kamara migrated to the United State in 1998 due to the Civil War in his country. He obtained his Associate Degree in Automotive Technologies at Lincoln Tech Institute in Philadelphia. He later followed his passion by obtaining a Bachelors of Science Degree, in Criminal Justice Administration from the University of Phoenix campus in Downtown Philadelphia. Mr. Kamara later went on to obtain two Master’s degrees from New England College and Kaplan University in Criminal Justice Leadership and Homeland Security Emergency Management respectively.
