Coronavirus and the Real Estate Markets

The coronavirus has been the toughest force behind the recent volatility in real estate markets, which has been running uninterrupted since October 2019.
By: Center For Real Estate Studies
 
SAN FRANCISCO - Feb. 26, 2020 - PRLog -- We should be aware that real estate markets could react ahead of the peak of the epidemic, as they tend to overreact at the beginning of a crisis and then stabilize and rebound, despite the continuation of negative news. Unless this doubt is able to disrupt our economy into a shock wave – which not happened so far – excessive downward setbacks could provide an opportunity for investors to acquire real estate with attractive valuations and good fundamentals.

  The decline in mortgage rates in 2019 has substantially improved the buy-to-rent and payment-to-income affordability ratios. According to the US Census Bureau, the median price-to-rent ratio (median home value divided by the median annual rent equals the median price-to-rent ratio) has fallen to 17.91, a level which compares to the ratios seen in 2015/2016 and is only slightly higher than the median ratio of 16 from 2004 to 2006. In 2007/2008.

    Benefits of the partial solution for the US/China trade tension and the definitive Brexit decision will, however, outweigh the increasing concerns with respect to the outbreak of the novel coronavirus in China. We believe these corrections in real estate prices are only temporary in nature. We therefore currently do not intend to change our projections or our recommendations to purchase real estate in "pockets of opportunity" as pointed out in our quarterly research report MARKET CYCLES.

ABOUT THE AUTHOR: Eugene E. Vollucci, is considered to be one of the foremost authorities on real estate taxation and investing and has authored books in these fields published by John Wiley & Sons of New York. He is the Director of the Center for RE Studies, a real estate research organization and President of calstatecompanies. To learn more about the Center, please visit our web site at http://www.calstatecompanies.com

UTUBE: https://youtu.be/868wrjNPQFM



Contact
calstatecompanies.com
***@aol.com
End
Source:Center For Real Estate Studies
Email:***@aol.com
Posted By:***@aol.com Email Verified
Tags:CALSTATECOMPANIES
Industry:Real Estate
Location:San Francisco - California - United States
Account Email Address Verified     Account Phone Number Verified     Disclaimer     Report Abuse
CALSTATECOMPANIES News
Trending
Most Viewed
Daily News



Like PRLog?
9K2K1K
Click to Share