Housing Market Predictions 2020: Corona Virus Los Angeles
When it comes to COVID 19 housing market predictions 2020, Los Angeles landlords don’t need
to freak out. You may have legitimate worries about maintaining your properties, tenants not
making rent, and the future of selling and buying homes, but all is not lost. People are asking
how to weather the storm and whether or not the housing bubble is going to burst once again.
The good news is, things are not looking irreparably bleak for the California housing market
predictions 2020: Corona virus has come to town, but the government is catching up quickly. Brand
new laws are being creatively legislated as unprecedented and urgent needs arise. Landlords
and tenants are working together to make foolproof plans for unprecedented times.
There are estimates saying partial quarantine could last up to three years, going away over summer and
coming back in late fall or winter. Luckily, companies and individuals are strategizing for the
long-run. Read on for tips for landlords on easing through this vexing moment.
When will the housing market crash in California?
Coronavirus, thanks a lot.
In this Cocid-19 economy, when will the housing market crash in Los Angeles, specifically,
and in the greater United States, if it will?
Everyone is fearful of another real estate slowdown because of the pandemic. The best way to predict what’s to come is by exploring what
happened in the most recent bubble burst in the United States.
So, let’s compare.
Get to the point already, won’t you: will the housing market crash in 2020? The situation now is
inherently different from the crashes that came before. Concerning the US housing bubble and
crash, the issue was people getting loans who couldn’t truly afford them. This led to them buying
homes they also couldn’t pay for, and ultimately they went bankrupt and lost their properties to
banks. This is not the issue we’re facing with Covid-19.
Right now, in the Los Angeles housing market forecast for 2020, real estate prices are being raised at a slow and
steady pace, not spiking dramatically. Another climatic difference between now and the Great
Recession is that stricter background checks are being done with money lending. The people
receiving mortgages today are much more likely to be able to pay them back.
What is the Covid-19 Los Angeles Housing Market Forecast 2020?
In an honest assessment of what to expect for the housing market Los Angeles, Coronavirus
portends likely transacional fluctuations. This pandemic is a new experience for everyone, and
it’s safe to say that recovery involves some swinging back and forth as people find their footing
in the new economy.
Don’t worry, landlords: most expect that the stimulus bill will help the housing market. Los
Angeles tenants, the great majority of them, continue to pay rent on time. Some are already
making up for any payments they missed out of necessity or because they wanted to save
money for more immediate needs like food or medical expenses.
When it comes to the buying and selling of homes, the induced by Corona virus Los Angeles
housing market bubble is not about to burst, nor is it expected to come to a complete halt
because of the pandemic. While transactions will most likely be slowed down, sales are expected to
increase (like always) over the summer months of July, August, and September. During these
months, home sales in Los Angeles county typically go up, and it’s the perfect time to move into a new home.
Housing Market News Los Angeles: did you know demand outdoes supply?
One thing the Southern California housing market has going for it is: more people want to buy
homes than currently are available. Because of this simple supply and demand equation, prices
are higher than if there were too many homes on the market and not enough willing to buy. In
fact, home prices are expected to increase a bit over one-percent in the next year. While
generally it would increase much higher than one percent, let’s breathe a sigh of relief that it’s
not an overwhelming dive.
Furthermore, the California economic forecast for 2020 implies that many are unwilling to sell in
the current climate. Uncertainty is in the air, so people are clinging to what they have. This
means there are even fewer houses on the market and ultimately makes prices for buying
homes more competitive! However, there are two sides to this coin. On the one hand, ambien online landlords
don’t want to sell, but on the other, buyers are a bit hesitant. Together it just means prices won’t
soar as high as you’d normally expect.
So, who will be moving into these fairly priced homes, you might ask? This time around it won’t
be folks with dubious businesses holding wads of cold cash. Instead the answer is millennials.
Millennials are the ones ready for home buying and moving. Many had recently started their
new families are encouraged by a combination of low mortgage rates and success on the stock
market including selling of their securities.
In terms of rentals, the Corona virus is a big influencer when it comes to tenant retention. People
want to hunker down wherever they are.
What are the effects on landlords from Covid-19 in Los Angeles?
Clearly the most pressing issue in Los Angeles housing market trends – Corona virus – is the
effect on landlords of tenants not paying rent. With the economy and the world halted, and
without a specific deadline plus unemployment on the rise, paying rent has become a real
challenge.
To deal with this, home-owners are deferring tenants’ monthly payments, but this isn’t just an
act of charity on the part of landlords. Brand new legislation protects residents like new rent
moratoriums. When a person claims they are unable to make rent, landlords may ask for proof.
Nonetheless, you are still prohibited from kicking anyone to the curb.
Because of unemployment benefits to tenants, most will be able and wish to keep their leases
which is a good thing: so there, Corona virus! At the same
time, out of urgency, your units may end up vacant when dwellers seek shelter with family or
scout lower pricing elsewhere. With sudden, unexpected vacancies, landlords may be in quite a
bind. If your cash flow has suddenly dwindled, how can you be expected to continue to afford
your yearly property taxes, mortgage payments, and routine maintenance or the cost of an
emergency repair?
It’s great that renters have so many safeguards, but of course this puts certain burdens on
landlords, as well. Many are asking, how can landlords protect themselves and their
investments? While tenants are able to collect unemployment, what is available for landlords?
What can landlords do to weather the storm?
You can relax, landlords, because even though you can’t control the pandemic itself, there are
some aspects still within your power.
Work with Tenants to Make Plans for Paying Rent
When your tenants can’t pay rent, there are a few things you can do. First off, if you suspect
they may be lying, ask for proof. If you trust your tenant, work with them to make a payment plan
that feels good to both of you. Another thing to consider is the barter and trade method. Say
you’re having a hard time paying for the maintenance and they are out of work: perhaps you can
come up with a creative way for them to “make” rent by helping out around your property. Of
course this is a short-term solution, but hopefully Corona virus is also a short term obstacle.
If you are forced to find a new tenant to fill a current vacancy you have, make sure you conduct
a thorough background check. You’ll want to make sure that your tenant is employed and/or has
enough savings to cover the next year (or three!), since none of us knows exactly how long this
situation will continue.
Apply for Mortgage Forbearance
Another option for landlords is to apply to delay your payments. Forbearance mortgage is
available under the CARES Act and allows mortgage borrowers to wait it out another year or to
payless than planned and defer. The best thing to do is reach out to your lenders and have a
a frank conversation about what your options are a year down the line, and even further if this
the situation is to persist.
Summary
Dear landlords, when it comes to Corona virus and economy, we hope this article has given you
hope! The choppy waters will even out soon, and in the meantime, talk with your tenants and
lenders and strike some deals that will help you wait out this bizarre and historical blip.
If you need help with your luxury Los Angeles property contact Luis Pezzini at +1-310-275-2076, and get the answers to your real estate questions from the top real estate agent in Los Angeles.
