Most countries in the world are currently experiencing an economic recession. The United States of America is no different. The covid19 pandemic has had a devastating effect on the economy of every nation. The stock market isn’t very palatable and people are currently seeking profitable companies to invest in. Like in any recession or after a global pandemic, there is always an opportunity for millionaires to be made if people invest in the right business. As of now, real estate is one of the best you can invest in.
Most Americans purchase their houses on mortgage however, homeowners are currently seeking forbearances on their loans and experts have predicted that more people could lose their homes as many have started filing unemployment benefits as an excuse not to pay up their mortgage. Of course, the forbearance relief and unemployment benefits will come and go, but homeowners who cannot pay up will be at risk of losing their homes.
This problem creates an opportunity in the real estate market, and providing a solution to this ugly scenario of distressed homeowners could be a way in for you into the real estate market provided you have the right knowledge and skills to pull this off.
Also, the prices of houses in the United States of America have been weakening since 2017. According to research by the Federal Reserve Economic Data, there has been a decline in the median prices of houses in the USA since 2017. Further insight into this reveals that the median prices of houses have reduced from $340,000 to $310,000 over the last three years. This statistic is a great buy signal and acquiring houses at this moment could be one of the investments that could yield enormous profit in years to come. If you are looking for a real estate company to invest in, you can consider Crowd Street.
Another powerful indicator is the enormous profit in the stock market in 2019 before the 2020 pandemic. Stock investors made an enormous gain in 2019 which is an indicator that the economy was about to get better however, the coronavirus pandemic made us see a great decline in the stock market. With things getting back to normal after the pandemic, it seems the economy will take a better turn and it will be one of the best periods to invest in the real estate market. Real estate stocks are relatively cheap and just bouncing back, it will be the perfect time to join and take profit from the trade reversal that could be experienced soon.
In addition, home rents continue to go up. For estate properties used for renting purposes, the value is evaluated based on the rental income. Taking a cue from the past five years, despite the decline in prices of homes in the United States, home rents have continued to surge over the years. This indicates that buying or investing in real estate especially for the rental purpose could be very profitable at this point in time and could yield enormous profits in years to come.
Wage growth in the United States could also trigger real estate appreciation in the region. Research in 2019 saw that the median household wage was about $63,179 at the end of 2018. This alongside strong employment in the United States could be very paramount to a price appreciation in the real estate sector. Fortunately, the median household wage has continued to rise in 2019 and 2020 indicating that the price appreciation in the real estate business might also follow the same trend.
Furthermore, the coronavirus pandemic has kept foreigners who are big sharks in the business at bay. Before now, those who wish to buy houses in coastal cities had to compete with big money always swaying sellers and creating a bidding war. However, with these foreign investors in hibernation, it’s a good time to get interesting and reasonable deals while trying to invest in real estate at this time. In fact, from a business perspective, the best time to buy is when the big sharks are taking a nap.
More importantly, with the United States elections close by, and politicians have to make sure that the economy is as good as it can be, of course, they need this to continue to stay in power. In essence, even with the covid19 pandemic, the United States economy is at the best it can be at the moment and will continue to get better. Without a shred of doubt, it’s one of the best times to invest in real estate.
In conclusion, the real estate sector is one with the greatest crowdfunding in the United States as we currently speak. With all economic factors in view and greatly considering all business indicators, there’s no better time to invest in the real estate business. The time is now.