The outbreak of the coronavirus pandemic has certainly proved a challenge for the global economy. Our everyday life has been forced to make temporary changes, as we all take part in a worldwide effort to halt the spread of the virus and resume market conditions to normality as soon as possible. But even though a cloud of uncertainty is hovering around the world right now, this could be a good chance to reevaluate your investment options and consider in which way this crisis could represent an unexpected opportunity for you. Experts in the housing market are confident that given the recent measures issued by the Federal Reserve of the US, there is a break in the clouds for real estate investors. Yes, even in the midst of volatility and uncertainty. But how is this possible?
A shelter from the crisis for the real estate market
Alongside other moves to shield the country’s economy from the effects of the pandemic, the Federal Reserve has cut interest rates to record lows, seeking to boost the flow of credit during the upcoming weeks of strain. Immediately after the first emergency measures were announced, mortgage applications jumped while the sales of homes started showing a steady rise. This is why experts are foreseeing that the housing and mortgage industries will not suffer as much as other sectors of the economy and that the market will remain relatively stable through the outbreak.
But how exactly can you benefit from the current situation?
- If you are a homeowner looking to refinance your mortgage, this has suddenly become a unique opportunity to get a substantial improvement in your mortgage rates.
- For those interested in buying, with the extraordinary low-interest rates and with more people expected to stay in a rental property for longer after the crisis, the return on your investment can be significant, especially once the economy starts bouncing back.
Prospects of recovery for a vigorous industry
The recent attempts to prop up the US economy via emergency measures are been compared to those efforts made during the 2008 financial crisis, which were effective in bolstering the economy during and after the recession — and helped fuel the longest streak of economic growth in US history. In a recent statement, the Federal Reserve has assured that the low-interest rates will remain until the country’s economy has recovered from the unexpected downslide provoked by the outbreak.
So, with industry experts forecasting a relatively clear sky for the housing market even in this context, the crisis could represent an opportunity to seize if you are interested in investing in real estate. As we have seen in previous articles, this kind of investment has been proved to be one of the most reliable ways to guarantee you will get a profit from your money. And even more so, in times where the real estate market has shown to be more sheltered than others from the uncertainties aroused by the advance of the virus.
Why real estate investment could be the best option right now
Making the right decision in periods of uncertainty is one of the most difficult challenges we face during our lives. And while it is a fact that the full consequences of the current coronavirus outbreak in the US and the global economy cannot be determined at this point, experts agree that, since this unexpected turmoil has caught the housing market in a robust shape and the interest rate cut has quickly shown positive effects in the industry, there are good reasons to expect that the recovery will come fast enough — and that the succeeding rebound may be substantial.