Effect of COVID19 on Real Estate

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wkimdds
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Effect of COVID19 on Real Estate

Post by wkimdds » Wed Mar 25, 2020 3:03 am

What do you guys think?

If this does not prolong, I think it won't have major impact on RE (as people need a place to stay)

but if COVID19 does prolong and people starting to run short of emergency fund to pay mortgage/rent/etc, this can lead to RE price coming down.

Any thoughts?

My opinion 1) Stock 2) Luxury Goods 3) House will be affected in order.

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Noobvestor
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Re: Effect of COVID19 on Real Estate

Post by Noobvestor » Wed Mar 25, 2020 3:30 am

The virus is so far wreaking havoc on things like AirBNB, because people aren't traveling and aren't comfortable with short-term rentals that may or may not be thoroughly cleaned. The short-term impact I see so far appears to be: a lot of short-term AirBNB-type rentals getting sold as condos and/or converted for long-term rental purposes. Increase supply of buyable/rentable real estate, and presumably you decrease costs.

Extremely anecdotally: lots of local places seem to be suddenly up for rent. Maybe demand will still outstrip supply, maybe not. The apartment complex I rent in is suddenly offering bonuses to new renters - again, it's one data point, but fits my theory. I think rents will come down. My lease is coming up shortly. Given that we're self-quarantined for the most part, I'm going to see if we can add space without adding cost. /2 cents
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motorcyclesarecool
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Re: Effect of COVID19 on Real Estate

Post by motorcyclesarecool » Wed Mar 25, 2020 3:55 am

I have a suspicion that certain VHCOL markets have lots of AirB&B type rentals. Many are owned outright, many are mortgaged, and I have a sneaking feeling that a surprising number of these are leased and sublet by the Airbnb business owner.

There are unsuspecting, otherwise responsible landlords who are about to get shellacked when their lessees break lease en masse because they lack the Airbnb cash flow they relied on.

There are over leveraged Airbnb owners who are about to default on their mortgages.

I predict a real estate crash in VHCOL markets with lots of Airbnbs.
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.

pocketplayer
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Re: Effect of COVID19 on Real Estate

Post by pocketplayer » Wed Mar 25, 2020 5:39 am

Story today that people are heading to the mountains and desert...rentals getting
vacuumed up and some offering double for long term rentals...in CA Joshua Tree,
29 Palms...places that are very remote on 2-5 acres...people want out of city

personally, my dad passed and house was to be sold within a year and that is next
month...worst possible time...sister has trust and hope she doesnt sell low out of
panic...that is if people are buying

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Watty
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Re: Effect of COVID19 on Real Estate

Post by Watty » Wed Mar 25, 2020 7:58 am

All real estate is local so it would be hard to generalize.

Some areas were pretty bubbly and in places like the Bay Area like the Bay Area a lot of people depended on RSU and bonuses to be able to afford houses at crazy prices. Even if they still get these I doubt that they will take them for granted in the future.

If supply chains are disrupted it might be difficult to build new homes.

It is a bit morbid but if a lot of people die in the pandemic then there houses would be sold and that might also affect the market.

pmj78910
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Re: Effect of COVID19 on Real Estate

Post by pmj78910 » Wed Mar 25, 2020 8:29 am

I wonder if this pandemic will ultimately lower the price of housing in high density, urban areas (Manhattan, San Francisco, etc). Given that another pandemic will likely occur at some time in the not-too-distant future, perhaps city dwellers will realize that rural America has some advantages (built in social distancing). Plus, as teleworking becomes the norm, the commute time to large cities may be less of an issue.

winterfan
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Re: Effect of COVID19 on Real Estate

Post by winterfan » Wed Mar 25, 2020 8:37 am

Real estate is local of course, but I always look at the current real estate listings in my neighborhood and city. We live in a MCOL city and the market has been quite strong for years, with low vacancy rates. I am really surprised to see many listings that just came on the market in the last week are already under contract. There appears to be no discounts either. The price range is 300K-600K.

SDLinguist
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Re: Effect of COVID19 on Real Estate

Post by SDLinguist » Wed Mar 25, 2020 8:47 am

Realistically I think very little will change in any areas which are "desirable" - SD, LA, SF, Portland, Seattle, Denver, Austin, Boston, NYC, Atlanta, Research Triangle in NC, etc.

These places suffer from a chronic lack of housing which has skyrocketed prices for rentals and sales fuled by low interest rates.

If anything we may see a short term flattening of prices in those areas but nothing like the 40-60% drawdowns we saw in 08-09 in places like Las Vegas.

The places hardest hit in the RE space will be the same as in 08-09 because fundamentally nothing has changed. Las Vegas or Florida can't move

delamer
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Re: Effect of COVID19 on Real Estate

Post by delamer » Wed Mar 25, 2020 9:56 am

There is a temporary suspension/lowering of mortgage payments available for federally-backed mortgages: https://www.investopedia.com/how-to-get ... ef-4800539

How many owners will qualify and can get help is, of course, a big question mark.

But it could stabilize the real estate markets somewhat if it is successful.

Presumably the places hardest hit by the pandemic will suffer the most economically, including real estate.

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willthrill81
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Re: Effect of COVID19 on Real Estate

Post by willthrill81 » Wed Mar 25, 2020 10:07 am

motorcyclesarecool wrote:
Wed Mar 25, 2020 3:55 am
I predict a real estate crash in VHCOL markets with lots of Airbnbs.
I doubt that VCHOL market prices have been propped up much by AirBnB and the like. Consequently, I don't see a real estate crash for that reason as being likely.

My thinking is more along the lines of how necessary it is going forward for people to congregate in VCHOL areas like the Bay area if their work (i.e. tech) can be done remotely, as it is now. All of the telework being done now may result in many people continuing to do it permanently and not needing to live close to their employer's physical location.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

GibsonL6s
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Re: Effect of COVID19 on Real Estate

Post by GibsonL6s » Wed Mar 25, 2020 10:13 am

I am in RE PE and can tell you the impact is extraordinary. Construction is changed due to COVID going through work forces, delays in supplies and materials and shut downs in some areas. Tenants are closing, laying off workers and closing stores. Apartment tenants are getting laid off and many are unable to pay rent, traffic has halted. In the capital markets, term sheets ie liquidity are being pulled, sales are halted so values are unknown. an d on and on. So no safe place here. :D

Alan S.
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Re: Effect of COVID19 on Real Estate

Post by Alan S. » Wed Mar 25, 2020 10:21 am

Prices of upper end homes should suffer the most. Emerging from this crisis, people will feel that what they used to take for granted is now vulnerable. They probably will not want to allocate as much of their now reduced wealth toward a non liquid asset.

Zillow will be doing some major work on their algorithms.

anon3838
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Re: Effect of COVID19 on Real Estate

Post by anon3838 » Wed Mar 25, 2020 10:22 am

I live in the Bay Area, and I’ve lived here for several decades.

Prices have gone up in my neighborhood. Homes that were “coming soon” last month with a set price, have shown price change (increase) before the actual list date (I found this info by looking at the price history on Zillow for the properties). I had a note on my door just a couple of weeks ago from an agent asking me if I would consider selling my off-market home to her buyer.

Anecdotally, when I moved into my current neighborhood 10 years ago (new construction home), the builder mentioned to me that most of my neighbors paid cash for their homes. That’s about 300 new construction homes.

Also anecdotally, many of us are able to WFH during this time, but my own employer won’t continue that practice, as my management has little else to do, than walk around to see whose sitting in their office chair...I would call the environment hyper-micromanagement. They’re hating the fact that we are all at home for this period of time.

My megacorp employs about 8k people in my part of the Bay Area.

oldfort
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Re: Effect of COVID19 on Real Estate

Post by oldfort » Wed Mar 25, 2020 10:25 am

In the short run, I expect the residential real estate market to come to a halt. If your state has a shelter in place rule, most buyers won't want to buy a property they can't tour in person.

annu
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Re: Effect of COVID19 on Real Estate

Post by annu » Wed Mar 25, 2020 10:30 am

Halt on evictions, while a good move, will put all the burden on landlords. Unless they planned to be able to continue paying mortage for extended periods of time, beyond typical vaccancy rates, there will be cash strapped landlords looking for a way out, desperate times can result in folks trying to get what they still can and offload and impact rental income. On top of that, if govt. opens up things early, and this pandemic extends, prolonged halt on evictions, will put strain on even more commercial RE owners.

And this is not even considering job losses. I think lots of Class C and D buildings will be heading to market, as owners of those buildings will be the ones most impacted, as the typical profile for their renters is service industry or related retail space, in general jobs which will be impacted by Covid 19, if they cant get jobs, will not pay rent, cant be evicted, but mortgage even if halted, which is not the case right now, the income will stop, but you will still need to do repairs or fix any problems that happen at the property.

oldfort
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Re: Effect of COVID19 on Real Estate

Post by oldfort » Wed Mar 25, 2020 10:34 am

anon3838 wrote:
Wed Mar 25, 2020 10:22 am
as my management has little else to do, than walk around to see whose sitting in their office chair...I would call the environment hyper-micromanagement.
Wow, so your management's job consists mostly of making sure people are at their desks.

Luckywon
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Re: Effect of COVID19 on Real Estate

Post by Luckywon » Wed Mar 25, 2020 10:44 am

My friend's home feel out of escrow. Buyer was concerned about losing his job. With unemployment skyrocketing, and a large number of people taking a large hit to their personal wealth, I imagine real estate prices will be coming down significantly.

halfnine
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Re: Effect of COVID19 on Real Estate

Post by halfnine » Wed Mar 25, 2020 11:05 am

oldfort wrote:
Wed Mar 25, 2020 10:34 am
anon3838 wrote:
Wed Mar 25, 2020 10:22 am
as my management has little else to do, than walk around to see whose sitting in their office chair...I would call the environment hyper-micromanagement.
Wow, so your management's job consists mostly of making sure people are at their desks.
They probably came to that conclusion after reading this thread.

anon3838
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Re: Effect of COVID19 on Real Estate

Post by anon3838 » Wed Mar 25, 2020 6:22 pm

oldfort wrote:
Wed Mar 25, 2020 10:34 am
anon3838 wrote:
Wed Mar 25, 2020 10:22 am
as my management has little else to do, than walk around to see whose sitting in their office chair...I would call the environment hyper-micromanagement.
Wow, so your management's job consists mostly of making sure people are at their desks.
That is correct. I work at a company that has put a lot of focus on building little empires with a LOT of layers of management. Not uncommon in tech, but this place does seem to be quite excessive.
halfnine wrote:
Wed Mar 25, 2020 11:05 am
oldfort wrote:
Wed Mar 25, 2020 10:34 am
anon3838 wrote:
Wed Mar 25, 2020 10:22 am
as my management has little else to do, than walk around to see whose sitting in their office chair...I would call the environment hyper-micromanagement.
Wow, so your management's job consists mostly of making sure people are at their desks.
They probably came to that conclusion after reading this thread.
Thanks for link to the other thread. From what I've read so far on Page 1, it seems accurate. I watch 3 layers of managers daily, who literally do nothing more than walk around talking to people. I personally find it to be stressful and counter-productive....but I'm a do'er, and like to make a difference that's quantifiable (yes, I know being a corporate employee is the worst place for that approach!)

Sorry to derail this thread...point is...I don't see a paradigm shift to WFH after the shelter-in-place is over.

shm317
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Re: Effect of COVID19 on Real Estate

Post by shm317 » Wed Mar 25, 2020 6:31 pm

Anecdotal but I listed a rental for sale at what I thought was a bit of a reach price (not desperate to sell and little supply nearby). Thought timing was massively unlucky as it hit the market two weeks ago. But got a solid offer not too long after listing. We’ll see if we make it to close

chassis
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Re: Effect of COVID19 on Real Estate

Post by chassis » Wed Mar 25, 2020 8:03 pm

I don't see residential real estate, primary dwellings, being affected much.

In my area, homes are sold quickly at list price or higher.

In my area, supply is barely sufficient, possibly insufficient, for demand. Residential single family home construction was starting to boom this winter, will take a short pause due to COVID and in my view will be booming this summer and fall. Central midwest.

Geist
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Re: Effect of COVID19 on Real Estate

Post by Geist » Thu Mar 26, 2020 12:07 am

My home is currently on the market for sale. A few days ago, we got feedback on a showing from one couple's agent stating that "the house was awesome! But the husband is in a panic-pause buying mode ... They are in a 'quarantine time out.'" Personally, I thought that was hilarious...but perhaps indicative of some of the fears that could at least temporarily impact RE markets.

fatlever
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Re: Effect of COVID19 on Real Estate

Post by fatlever » Thu Mar 26, 2020 7:03 am

I realize this is extreme but I am so glad I didn't dip my toes into this.

https://np.reddit.com/r/realestateinves ... re_saying/
PLEASE HELP. My tenants organized and are saying they won't pay rent this month. ALL OF THEM. What can I do?

ryman554
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Re: Effect of COVID19 on Real Estate

Post by ryman554 » Thu Mar 26, 2020 2:38 pm

fatlever wrote:
Thu Mar 26, 2020 7:03 am
I realize this is extreme but I am so glad I didn't dip my toes into this.

https://np.reddit.com/r/realestateinves ... re_saying/
PLEASE HELP. My tenants organized and are saying they won't pay rent this month. ALL OF THEM. What can I do?
Sounds like the landlord should have been a better landlord... Good landlords (you know, like the ones that are reasonable and have reasonable tenants) don't end up in situations like this.

jminv
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Re: Effect of COVID19 on Real Estate

Post by jminv » Thu Mar 26, 2020 4:08 pm

wkimdds wrote:
Wed Mar 25, 2020 3:03 am
What do you guys think?

If this does not prolong, I think it won't have major impact on RE (as people need a place to stay)

but if COVID19 does prolong and people starting to run short of emergency fund to pay mortgage/rent/etc, this can lead to RE price coming down.

Any thoughts?

My opinion 1) Stock 2) Luxury Goods 3) House will be affected in order.
It will lower the demand for houses in the near term and probably increase the supply of them, which will vary by region, since people will be moving. This will be somewhat counteracted by all the different support measures that are in place either through lower interest rates or the stimulus package. Prices will be less than they otherwise would have been in much of the country.

Lot of people don't want to buy now because they aren't 100% sure about the stability of their jobs or their partner's job while also wondering whether prices will fall further. In some areas, people are basically stuck at home so buying a new house wouldn't be at the top of their priority list, anyway. Where I'm stuck at the moment, no houses are moving, there are no open houses anymore, and hard to get in to see a house too. Obviously this isn't the case in much of the country.

Supply of houses will increase in the medium term because people will move because the mortgage relief will end at some point before everyone is back in work (or rental relief which will impact properties that were bought to rent)they have lost their job, people need to move somewhere else to find one, or they need to move to a smaller house to fit their budget. I'd guess it will hurt the most at the higher end of the house price range where many buyers were aspirational and at the lower end, where more people lost their jobs and have income issues. Probably also with landlords who were overextended and didn't have appropriate cash reserves - their relief will also end at some point and if they don't have tenants in place, they could lose their properties.

The wealth effect will also come into play, especially at the higher end where people lost a lot of money in stocks, investments, or options becoming worthless and will spend less for awhile as a result.

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wkimdds
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Re: Effect of COVID19 on Real Estate

Post by wkimdds » Thu Mar 26, 2020 4:20 pm

fatlever wrote:
Thu Mar 26, 2020 7:03 am
I realize this is extreme but I am so glad I didn't dip my toes into this.

https://np.reddit.com/r/realestateinves ... re_saying/
PLEASE HELP. My tenants organized and are saying they won't pay rent this month. ALL OF THEM. What can I do?

This is why being a landlord is hard. Too many pos out there.

annu
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Re: Effect of COVID19 on Real Estate

Post by annu » Thu Mar 26, 2020 8:04 pm

wkimdds wrote:
Thu Mar 26, 2020 4:20 pm
fatlever wrote:
Thu Mar 26, 2020 7:03 am
I realize this is extreme but I am so glad I didn't dip my toes into this.

https://np.reddit.com/r/realestateinves ... re_saying/
PLEASE HELP. My tenants organized and are saying they won't pay rent this month. ALL OF THEM. What can I do?

This is why being a landlord is hard. Too many pos out there.
What class building is that? I do not want to assume too much, but if you are targeting specific segment of society, charging them high rents, you will get it paid back in kind sometimes. With 32 units, he should have planned for savings including cap rate, so even if they do not pay rent for next 3-4 months, even if could evict them, it would have been tough to replace renters anyways.
While I do feel bad for him, but his example is like, someone doing extreme risk based investment, and inferring from that stocks are bad, but it does not mean all real estate investments can and will turn bad. We have a rental, as long as some is paying rent, they are taking care of mortgage for us, and that is all we expect, if I was expecting the income as my sole business and income, I sure as hell, would be planning downturns, like any business and have some emergency plan in place. I hope he comes out okay from this, but there is risk with any business, and diversification is key in real estate.

Also he does not have 32000 units, if he did, he might be getting bailed out by the govt..... :o
But even as a small business I am hoping he has some ways to get help.

The fact that, it all rental units joined so quickly, and not even willing to negotiate or work with him, tells me there is more to it, then just a model renter/landloard relationship, and suddenly things going south. There is a power dynamic in play in every Landlord/renter interaction, for the first time now with eviction halts, many landlords will be waking up with a shock to how they have been interacting with their customers....

fatlever
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Re: Effect of COVID19 on Real Estate

Post by fatlever » Fri Mar 27, 2020 6:30 am

ryman554 wrote:
Thu Mar 26, 2020 2:38 pm
Sounds like the landlord should have been a better landlord... Good landlords (you know, like the ones that are reasonable and have reasonable tenants) don't end up in situations like this.
Well when people lose their jobs, struggle and are uncertain about the future, reasonable tenants priorities might change even if they have good landlords. I mean even businesses like Cheesecake Factory are saying they won't be able to pay rent next month.

https://www.cnn.com/2020/03/26/business ... index.html

And just google "Keep your Rent" movement which appears like it's only in Canada but things like this are the last thing I'd want to even have on my mind in a health and economic crisis.

Image

ncbill
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Re: Effect of COVID19 on Real Estate

Post by ncbill » Fri Mar 27, 2020 7:26 am

Trying to sell the home of a deceased relative.

Didn't get it onto the market until the end of last year...got a handful of low-ball offers over the winter which I rejected.

Had hopes for this spring, but now I wonder if it'll get any traction until the following spring.

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Ramjet
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Re: Effect of COVID19 on Real Estate

Post by Ramjet » Fri Mar 27, 2020 7:34 am

ncbill wrote:
Fri Mar 27, 2020 7:26 am
Trying to sell the home of a deceased relative.

Didn't get it onto the market until the end of last year...got a handful of low-ball offers over the winter which I rejected.

Had hopes for this spring, but now I wonder if it'll get any traction until the following spring.
Rent until the dust settles?

Thought Is Free
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Re: Effect of COVID19 on Real Estate

Post by Thought Is Free » Fri Mar 27, 2020 7:43 am

I was an economics major but not afraid to admit the economy is way more complicated than I can comprehend. I do know a lot of businesses already can't pay rent (see Cheesecake factory/game stop/Subway) and 3 million people lost their jobs last week. My crystal ball says real estate goes down with heavier losses on the commercial side.

jasperhobbs
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Re: Effect of COVID19 on Real Estate

Post by jasperhobbs » Fri Mar 27, 2020 7:48 am

I have not heard of any buildings or land dying of the coronavirus so no effect.

ryman554
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Re: Effect of COVID19 on Real Estate

Post by ryman554 » Fri Mar 27, 2020 11:18 am

fatlever wrote:
Fri Mar 27, 2020 6:30 am
ryman554 wrote:
Thu Mar 26, 2020 2:38 pm
Sounds like the landlord should have been a better landlord... Good landlords (you know, like the ones that are reasonable and have reasonable tenants) don't end up in situations like this.
Well when people lose their jobs, struggle and are uncertain about the future, reasonable tenants priorities might change even if they have good landlords. I mean even businesses like Cheesecake Factory are saying they won't be able to pay rent next month.
Of course renters are scared. A they should be. So should the landlord. So, they should work together to get through it. The kind of landlord who would have gotten the entire building in solidarity against them clearly has history that was waiting to come to fruition.

People are generally reasonable, at least the ones I'd want to rent to. If I'm a landlord, I'm asking the tenants how they are doing and am kind and compassionate, especially if I have a building which is at high risk for lots of layoffs in my tenants. If you treat your tenants like an airline treats passengers -- with the attitude that there is always someone else to come rent if you default, therefore I don't care about you, then you are in trouble when power dynamic changes.

So, the landlord either doesn't have reasonable tenants (bad leasing decisions), or treated their tenants poorly (bad service provider) leading to combination of both.

Placing this at the tenants feet, while convenient, is a bit disingenuous and likely not the entire truth.

Bobby206
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Re: Effect of COVID19 on Real Estate

Post by Bobby206 » Fri Mar 27, 2020 11:48 am

As a landlord I am curious what's going to happen in a few days with the rents. Lol.

My one commercial tenant has told me things will be tight. I'll likely do an abatement of some amount with him. However, I also suggested he look into the stimulus money because maybe his business qualifies for something.

With my rentals I expect the couple of tenants that are late every month will be late and/or not pay. I am worried about my high end residential rental (over $5k/month) as I know his business is closed.

I have debated about reaching out but I decided to wait for people to ask and then I'll decide. Am thinking abatement not concession.

Luckywon
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Re: Effect of COVID19 on Real Estate

Post by Luckywon » Fri Mar 27, 2020 12:59 pm

jasperhobbs wrote:
Fri Mar 27, 2020 7:48 am
I have not heard of any buildings or land dying of the coronavirus so no effect.
Don't see any buildings or land listed in the obituaries from 2008 so I'm not sure your reasoning holds up.

femmefire
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Re: Effect of COVID19 on Real Estate

Post by femmefire » Fri Mar 27, 2020 1:05 pm

We listed our house for sale last Thursday (our state closed non-essential business and schools) in a MCOL area. There were plenty of showings and we received a great offer in one day. The supply is really poor, but the demand is still there. We are anxious to get to signing day, but it seems as if our market has not slowed down at all.

cableguy
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Re: Effect of COVID19 on Real Estate

Post by cableguy » Fri Mar 27, 2020 1:16 pm

National chain stores and smaller retailers are telling landlords they can't / won't pay the rent. April for sure.....maybe May and even longer. White collar companies that sent their employees home to work from home are now wondering why they even pay rent in class A commercial buildings and more of their employees should stay home and work from home. Commercial real estate is gonna be a rough ride for next few months at a minimum. NYC is already in an over built situation....too many residential and commercial dwellings for rent or sale. NYC will see reduced prices all around. Which quite frankly is over due.

xenochrony
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Re: Effect of COVID19 on Real Estate

Post by xenochrony » Fri Mar 27, 2020 1:23 pm

In my LCOL area, just prior to covid19, SFH inventory in my price range was scant, less than a 30 day supply. Since the pandemic, supply has fallen off a cliff and is virtuallly nonexistent. That is surely going to stymie the large price declines folks are predicting. That is, until the deluge of foreclosures hit the market. However, with the foreclosure moratorium in place, supply should remain extraordinarily low, thus preventing price declines.

And, for the record, I am currently in escrow, praying this purchase can close late next month. All loan conditions , short of payment, have been met, thus far.

pkjr
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Re: Effect of COVID19 on Real Estate

Post by pkjr » Sat Mar 28, 2020 1:13 pm

so far had no effect in my area in FL/ Put one rental for rent - 29 inquiries in 1 day $1900 market rent. Put another for rent $2600 - many inquiries people are willing to do the application online with a video tour done by my existing tenant. I have also upped my rental requirements and increased deposit 2x. The inventory is still low. Having a stock market collapse and real estate collapse would be a double whammy. I do not think this will happen. This will be a long road to recovery though and not V recovery.

valleyrock
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Re: Effect of COVID19 on Real Estate

Post by valleyrock » Sun Mar 29, 2020 3:30 pm

Alan S. wrote:
Wed Mar 25, 2020 10:21 am
Prices of upper end homes should suffer the most. Emerging from this crisis, people will feel that what they used to take for granted is now vulnerable. They probably will not want to allocate as much of their now reduced wealth toward a non liquid asset.

Zillow will be doing some major work on their algorithms.
Won't appraisers have to be working with comparables, as before? So any changes in house values will take time to evolve. Any ain't nobody buying anything now, are they, given fear of contagion, etc.?

aguerriero
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Re: Effect of COVID19 on Real Estate

Post by aguerriero » Sat Apr 18, 2020 6:39 pm

Here in Manhattan some bottom feeders have been making offers sight unseen, without much luck from our experience. Perhaps, they will be more successful in a few weeks or months.

Robot Monster
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Re: Effect of COVID19 on Real Estate

Post by Robot Monster » Fri May 15, 2020 3:47 pm

The Fed warns that commercial real estate is particularly vulnerable to a selloff if the pandemic grows because “prices were high relative to fundamentals before the pandemic.”
https://news.bloomberglaw.com/banking-l ... emic-grows

randybobandy
Posts: 64
Joined: Fri Oct 05, 2018 10:51 am

Re: Effect of COVID19 on Real Estate

Post by randybobandy » Fri May 15, 2020 10:35 pm

Anecdotal:

Bought 3 years ago in a popular suburb of Detroit. Listed yesterday and by 7 p.m. today had 4 strong offers after ~ 20 showings. Uncle Sam is making me move so I am feeling quite fortunate. I had a few nights of concern over how selling could go.

All of the offers came in around 15% over what I paid for the house 3 years ago. The previous owners did not do themselves a favor and it showed poorly, needed some elbow grease to clean it up, etc.

--Randy Bo Bandy

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