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How will Coronavirus affect the Real Estate Market

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LightningHelix

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Just looking for a few opinions.

How do you guys think the real estate market is going to be affected by Coronavirus?

I've heard that Real estate usually trails economic effects, is there a month window or so after we hit bottom on investments, that we will see the bottom of real estate?

Looking for a good opportunity to get into income properties, but I know several of you are much more experienced in this than me.
 

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MoneyDoc

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Just looking for a few opinions.

How do you guys think the real estate market is going to be affected by Coronavirus?

I've heard that Real estate usually trails economic effects, is there a month window or so after we hit bottom on investments, that we will see the bottom of real estate?

Looking for a good opportunity to get into income properties, but I know several of you are much more experienced in this than me.
The market in Canada is actually rising because of the virus. More people are "fleeing". However, I expect a very big correction as soon as everything is settled down in a couple of months. The market prices are absurd. Top investors are not buying anything.
 
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LightningHelix

LightningHelix

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The market in Canada is actually rising because of the virus. More people are "fleeing". However, I expect a very big correction as soon as everything is settled down in a couple of months. The market prices are absurd. Top investors are not buying anything.
Thats surprising.. You think there is any reason why the virus would cause an increase in price?

Do you think it's the same for United States?
 

MoneyDoc

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Thats surprising.. You think there is any reason why the virus would cause an increase in price?

Do you think it's the same for United States?
My uncle is a real estate investor and he says people are literally "fleeing" from China and Iran. Most are coming to Canada or are trying to get their families to Canada. Not sure how credible this is but he's a big time player in Canada's market. With that said, prices are extremely high and do not make any sense at all. The one's in the "FOMO" stage are buying, which in my opinion is a big mistake. 30 year old homes in good areas are selling for $200k over asking. Does the area warrant that much of a price? Hell no. Even land prices don't make sense. The ones developing now are doing so because they've purchased the land years ago. In my city, I don't know of one developer that has recently bought land to build.

Not sure about the US market.
 

Bekit

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With that said, prices are extremely high and do not make any sense at all. The one's in the "FOMO" stage are buying, which in my opinion is a big mistake. 30 year old homes in good areas are selling for $200k over asking. Does the area warrant that much of a price? Hell no. Even land prices don't make sense. T
Maybe people who are pulling money out of the stock market are putting it into real estate?
 

biophase

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Personally, I think real estate will begin to decline. However, we won't see it begin decline until 6-8 months from now because sellers are usually oblivious to market changes. They will keep their asking prices up until the properties sit for a long time. Then eventually they will start to lower prices as their real estate agents begin to tell them what the market is doing.

I think investors who've been there and done that will wait and wait. Everything is so uncertain now. I'll probably wait at least until 2021 to do anything now.
 

MoneyDoc

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Personally, I think real estate will begin to decline. However, we won't see it begin decline until 6-8 months from now because sellers are usually oblivious to market changes. They will keep their asking prices up until the properties sit for a long time. Then eventually they will start to lower prices as their real estate agents begin to tell them what the market is doing.

I think investors who've been there and done that will wait and wait. Everything is so uncertain now. I'll probably wait at least until 2021 to do anything now.
I'm 100% with Kenric on this. I really feel like the end of this year we'll see a decline. Stress test for mortgages is getting easier this April in Canada, so prices will be on the rise and again, FOMO will kick in literally forcing buyers to buy.
 

DaRK9

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My uncle is a real estate investor and he says people are literally "fleeing" from China and Iran. Most are coming to Canada or are trying to get their families to Canada. Not sure how credible this is but he's a big time player in Canada's market. With that said, prices are extremely high and do not make any sense at all. The one's in the "FOMO" stage are buying, which in my opinion is a big mistake. 30 year old homes in good areas are selling for $200k over asking. Does the area warrant that much of a price? Hell no. Even land prices don't make sense. The ones developing now are doing so because they've purchased the land years ago. In my city, I don't know of one developer that has recently bought land to build.

Not sure about the US market.
That’s interesting considering how they handled SARS.
 

mikemiller

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Aug 19, 2019
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Hi,
The coronavirus will bring a great impact when it comes to the real estate industry. I recently went through this blog which was very useful. I hope it helps you too!
 

TFF123

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Dec 8, 2019
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Money has to go somewhere. It has come out of the stock market... and initially went to bonds. But now bond yields are almost non-existent and bank rates are just as bad.

For those (few?) without financial struggles, I'd expect them to be eyeing up property markets in the next few months as forced sellers begin to emerge.
 

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