The COVID-19 pandemic has for the most part stirred up the real estate market around the United States of America in an interesting way. Even though with the lack of home inventory, low-interest rates, and the fact that homeowners cannot be foreclosed upon, due to federal executive orders, and forbearance programs. Forbearance is when one mortgage servicer or lender allows you to pause (suspend) or reduce your mortgage payments for a limited period of time while you regain your financial footing. A multitude of federally backed mortgages has a December 31, 2020 deadline for requesting an initial forbearance. The CARES Act imposed a temporary moratorium on evictions of certain renters subject to certain conditions. With all of that being said, most homeowners, and landlords are not in a particular hurry to sell their property given the fact thousands of mortgage payments have come to a significant halt. The only high demand for real estate in the COVID-19 economy just so happens to be single-family homes. All other aspects of real estate such as commercial continue to stay stagnate and fall by 10% within the year 2021. Since the world in it’s self is becoming more and more isolated, office, retail and the hospitality aspects of the real estate market sales are down and will continue to go down in the future. As long as the isolation culture continues to grow along with lockdowns, travel bans and the whole get out of main street retail phenomena transpires. The hotel industry isn’t doing much better given the fact that most Americans do not, want to travel and stay at a hotel, or simply cannot afford to stay at a hotel as of December 2020. One of the biggest reasons why hotels are doing better financially compared to other commercial real estates, it's because that most travelers feel that the chances of contracting COVID-19 in someone's home is greater than contracting the virus within a hotel. My most recent mini-vacation to Houston, TX is a primary example of that feeling. I usually utilize Air BnB, because I like the feeling of staying within the community when I visit a city. However, I wanted to play it safe by staying in a hotel at the La Quinta Inn which was a great experience. Especially given the fact that there were only six other guests occupying the hotel during my stay. According to a new forecast from the Urban Land Institute and PwC corporation stated that the U.S. hotel industry isn’t expected to see mid to full occupy stays within their facilities by 2024. Another aspect to think about is that a significant amount of the hotel industry depends on big business conventions and with that lack of capital. More and more demand is growing in the suburbs and less demand for housing in the major cities. Office spaces may not be totally dead due to the reconfiguration of socially distanced spaces. Basically, the need for a huge amount of space will not be needed as much as it was needed pre-COVID. One good thing to take away from today's real estate market, that the warehouse spaces are in huge demand, especially since the rise of e-eCommerce is creating more of a need for warehouse and logistical spaces. When it all boils down to the high demand for single-family homes, it doesn’t seem that the home prices are going down any time soon. Real estate experts predict that the U.S. real estate market will not see residential prices go down until 2023. Please contact Patterson L. Properties LLC (PLP). for all wholesale real estate needs. Weather you are in a situation calls for immediate purchase of your property, or you're a real estate investor looking to purchase distress fix & flip properties. We're here to service your real estate needs, or refer you to our colleagues. Please contact PLP via email at PttrsLr1@gmail.com, or telephone 703-966-6843.
