How will Coronavirus affect the Real Estate Market

[biophase]

The market in and around Sedona, AZ is strong for residential. One friend has 12 in escrow. For a small town of 10,000 +, that's big. People that can, are moving from the big cities to the rural areas.

Commercial. I'm about to rent some space and the prices have fallen. I might even buy soon. Many retail businesses have gone under. The smaller owners of commercial are nervous. The big corps, not so much and it seems they're keeping prices up and waiting.
People smarter than me and with much more experience tell me it might be a little early to get into commercial. Maybe wait another month. But the deal I have on the table is good so I'll most likely pull the trigger.

Again, this is in and around Sedona,AZ. Also, a friend in MI selling residential says the market is strong. Multiple offers on properties.

Weird, all the homes I’m looking at in Sedona are sitting on the market and being reduced.

So I’m just waiting and waiting. I’m looking at $800k-$1.5m homes so maybe the higher end is stagnating. I’d imagine the larger Airbnb homes will be hurting soon.

 

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[MJ DeMarco]

I'm hearing that property taxes are going to skyrocket to account for budget shortfalls.

Hearing CA, AZ, CO, and other places.

Looks like it has started...

Nashville approves ‘painful' property tax hike

City levy rates would increase 34%

www.foxbusiness.com

 

[JustinY]

It looks like higher end real estate around Vegas are dropping prices if they're still on the market, but the lower end stuff is selling well.
We've seen some $500k houses drop $30k in the last 3-4 months while the $100-200k places are getting multiple offers.
Same around here in Oxnard, CA except you need to add $300k, haha.

And I heard that Vegas will likely increase taxes as well due to a huge hole in gambling revenue for the state.

 

[Red]

I'm hearing that property taxes are going to skyrocket to account for budget shortfalls.

Hearing CA, AZ, CO, and other places.

California is always running a deficit though.... CO is subsidized by weed, so I don't see that happening as sales are supposedly still up year over year there. AZ just needs to legalize recreational weed & we'll be fine, haha.

 

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[MattWorks]

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

Although I don't have experience nor the capital to invest, I see suburbs of larger cities as a buying opportunity considering more companies are going to integrate working from home more frequently, allowing employees to move out of expensive cities and live a bit further out in suburbs.

Best of luck!

 

[Bigguns50]

Weird, all the homes I’m looking at in Sedona are sitting on the market and being reduced.

So I’m just waiting and waiting. I’m looking at $800k-$1.5m homes so maybe the higher end is stagnating. I’d imagine the larger Airbnb homes will be hurting soon.

I haven't followed the market as close recently. I have noticed some, one in particular at about $1.3 mil, was well under $300/sq ft. Great price. (I would guess it might be an Airbnb prop). I've also seen some Airbnb properties up for sale. I've seen some FSBO signs as well. Those overleveraged should fall in price in time.

I'm having dinner w/friends who own a home in the Seven Canyons later this week. They have a lifetime of experience with commercial and residential. I'll let you know their opinions.

Let me know if I can do anything for you here or if you have questions about location.

 

[Bigguns50]

I can't imagine that the market will stay as strong as it is currently.

Agree. Unemployment is still HIGH. Virus is out of control in many areas. Then there's the Fear.
Doesn't look like the Feds will extend benefits. I'm wondering when the money will run out.

I wouldn't be comfortable buying anything at retail value at this point because of all the FOMO.

My Wife experienced FOMO just before the housing crash. Lesson learned.

AZ just needs to legalize recreational weed & we'll be fine, haha.

Getting there.....https://mjbizdaily.com/adult-use-cannabis-legalization-in-arizona-appears-headed-for-november-ballot/

 

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[biophase]

I haven't followed the market as close recently. I have noticed some, one in particular at about $1.3 mil, was well under $300/sq ft. Great price. (I would guess it might be an Airbnb prop). I've also seen some Airbnb properties up for sale. I've seen some FSBO signs as well. Those overleveraged should fall in price in time.

I'm having dinner w/friends who own a home in the Seven Canyons later this week. They have a lifetime of experience with commercial and residential. I'll let you know their opinions.

Let me know if I can do anything for you here or if you have questions about location.

I’d love to hear what they think of seven canyons properties and if they rent well. I have looked at a couple there but they seem more like a resort than a home to live in.

 

[Bigguns50]

I’d love to hear what they think of seven canyons properties and if they rent well. I have looked at a couple there but they seem more like a resort than a home to live in.

I'll let you know.

 

[Bigguns50]

I’d love to hear what they think of seven canyons properties and if they rent well. I have looked at a couple there but they seem more like a resort than a home to live in.

I just had a conversation with our apartment owner about 7 Canyons. PM me if you want and I'll fill you in a bit.

 

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[Connor]

So here are my preliminary thoughts (for whatever they are worth) on housing- think we'll see more demand for multifamily and industrial, but for single family:

1. This will likely accelerate the movement of people from the Northeast and California to the Sun Belt, so those areas will likely continue to see demand. Coastal SC here is going crazy with sales, but that will probably cool off later in the year. I would not want to own high-end property in the areas where people are bailing right now (i.e. Manhattan).
2. There is a TON of institutional capital sitting on the sidelines looking for a home. SFR funds can't buy enough effectively, so JP Morgan recently gave American Homes 4 Rent a bunch of money to develop rental subdivisions. If you're in the $100k-200k price point (or a bit above and below that), the SFR funds will help prop up pricing, as this will push more people into renting long-term.
3. With super low rates and banks not wanting to have a bunch of REO property, I think we will continue to see some level of forbearance even after the government rules end, which will make the lag time even longer than in 2008.

Unlike in 2009-10, where pretty much everywhere was impacted other than TX, I think we'll see a lot more places that hold up fairly well relative to the rest of the US. But that's just my opinion. We're continuing to carefully acquire through this, and we just did a rate adjustment too to capitalize on the low interest rates.

 

[traction2]

With the rates at around 2.8% now and the Fed saying they intend to keep them low for some time will this keep it a sellers market?
In Colorado even the new home builders have jacked up their prices that are not even built yet.

 

[MrB]

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 have been looking for a home in NC for the last few months. I've been watching it closely for about 3 years. I have gone to Asheville, Winston-Salem, and the Raleigh area.

The housing Market is as strong as its ever been, houses are literally going in 1 day.

With the low mortgage rates... I dont see how it can decline. I just got a 2.5% Loan on a 30 year.

 

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[biophase]

I haven't followed the market as close recently. I have noticed some, one in particular at about $1.3 mil, was well under $300/sq ft. Great price. (I would guess it might be an Airbnb prop). I've also seen some Airbnb properties up for sale. I've seen some FSBO signs as well. Those overleveraged should fall in price in time.

I'm having dinner w/friends who own a home in the Seven Canyons later this week. They have a lifetime of experience with commercial and residential. I'll let you know their opinions.

Let me know if I can do anything for you here or if you have questions about location.

So I just closed on my west Sedona home last Friday. Spent the weekend there. Can't wait to spend alot more time there. Now I have to furnish the place and get it ready for Airbnb next year.

 

[Bigguns50]

So I just closed on my west Sedona home last Friday. Spent the weekend there. Can't wait to spend alot more time there. Now I have to furnish the place and get it ready for Airbnb next year.

Congrats ! We love it here. The economy is doing well here and I only see improvements even with Covid. My office is on the West side near where we live. We're partial to this side of Sedona for many reasons. Let's connect next time your in town if you have a bit of time.