You likely already know that the coronavirus is causing massive amounts of uncertainty in different ways. For instance, this new virus has led to stocks that have plunged down to 30-year lows. Are you offering furnished rentals as a part of the housing industry? This probably makes you wonder what you have to worry about with coronavirus sticking around, at least for now.
Thankfully, you can breathe a sigh of relief. It’s unlikely that property values will drop during this time, based on the thoughts of expert real estate analysts. There is no way to say for sure how the pandemic is going to impact the industry. However, it’s believed that recent cuts to interest rates have insulated the market from a major crash of any kind.
Based on the thoughts of Eliza Owen, CoreLogic head of Australian research, the housing market has had a long history of doing better than other industries after economic shocks. So the chances are good that your furnished homes will still be doing alright compared to more volatile markets out there.
We also want to look to the industry in the United States. You’ll see that low inventory and low mortgage rates would typically lead to a competitive home buying market. However, recessions usually have little effect on the housing market. While coronavirus could be different, it’s not likely that this is the case.
On top of that, the government has created a moratorium on foreclosures for mortgages backed by the Federal Housing Administration, Freddie Mac, or Fannie Mae. This is expected to last through April, but may be even longer, and prevents the bottom falling out of the market due to excess foreclosures, as many who own furnished homes experienced in 2008. Based on how things are currently looking, those with furnished rentals may have little to worry about. The market is not likely to fall in the same way as stocks have in other industries. The most likely occurrence will be uncertainly over coronavirus leading to fewer property transactions. However, this will likely not lead to a huge change in pricing.
For all inquires, please contact:
- How the U.S. Housing Rental Market is Already Threatened by Coronavirus
- Why is There Such a Wide Range of Corporate Housing Rent Rates?
- Embracing Wellness Living Among Corporate Housing
- What You Need to Know About the 2020 Corporate Housing Report
- CHBO’s 10th Annual Corporate Housing Survey Proves This Industry Segment Is Profitable