Election Year - real estate values

needshave

Member
Location
Ohio
2020 has been a difficult year at best. With the pandemic rumored to still be spiking in areas and possibly making a return visit, plus the upcoming presidential election, how will all of this impact real estate sales and values. What if you are ready to sell, will the value of your property be impacted? Is it not the time to sell, instead just hold onto it for after the election and the honeymoon period? What about commercial properties, the same? Its a concern,Your thoughts appreciated.
 

Aneeda72

Well-known Member
If you are wanting to buy investment property, Utah is the place. The real estate market is still going up and no end in sight. Our house has increased 17% since we bought it and more than that since we got it on a low bid. The flipper had too many projects going on.
 

asp3

Senior Member
Here in the San Francisco bay area rents and property values are going down because people are now allowed to work from home wherever that is. I know Twitter decided that their employees can now be permanently working from home so some of them are moving out of the high cost San Francisco area where they have a big Twitter office and moving to lower cost regions.

So some areas are seeing an influx of people with higher salaries than those in the area and those areas are seeing their rents and property values going up.

Other factors are the damage and destruction that has happened from the fires in California and from the Hurricanes that have happened. The fires in California have kept up the prices in some areas as people need to find new places to live in the areas where they used to reside.

You need to determine what the current state is doing to your region and go from there.
 

asp3

Senior Member
I also forgot to include the affect of Covid-19 on vacation and tourist areas. Some of them are going to be depressed for quite a long time even after we get back to more normal travel availability. Some people are not going to be able to afford travel even if it is safe, so there won't be money going into areas with large numbers of outside tourists coming in. I think of places like Hawaii, Florida, NYC and other areas will be down for a while.
 
Suburban real estate is booming where I live. The main reason is that no one wants to stay downtown with all the BLM/Antifa crazies, the graffiti, and the ugly stumps of torn-down statues.

There are probably some great bargains for patient investors in the beautiful historic districts within the city limits.
 
I also forgot to include the affect of Covid-19 on vacation and tourist areas. Some of them are going to be depressed for quite a long time even after we get back to more normal travel availability. Some people are not going to be able to afford travel even if it is safe, so there won't be money going into areas with large numbers of outside tourists coming in. I think of places like Hawaii, Florida, NYC and other areas will be down for a while.
Florida is doing well. People from the Northeast are establishing permanent residence there to escape the crushing state income and local property taxes.

NYC, not so well, and it's going to be a while. It will eventually come back, however.
 

asp3

Senior Member
Florida is doing well. People from the Northeast are establishing permanent residence there to escape the crushing state income and local property taxes.

NYC, not so well, and it's going to be a while. It will eventually come back, however.
Thank you for the correction.

Looks like my speculation regarding Florida was wrong. I think it's economy is less driven by tourism than I thought it was. There are several articles I found saying that the Florida real estate market is booming these days.
 

Aneeda72

Well-known Member
Thank you for the correction.

Looks like my speculation regarding Florida was wrong. I think it's economy is less driven by tourism than I thought it was. There are several articles I found saying that the Florida real estate market is booming these days.
Well, New Yorkers have to love somewhere šŸ¤£
 

StarSong

Well-known Member
Most NYers love NY. It's such an exciting city.
When this pandemic is past the rents and prices in the five boroughs will zoom back up. I'd guess it's going to be a short window buying opportunity for NYers.

Yes, Florida is booming right now. Several of my friends have retired there to escape high NJ taxes and northern winters.
 

mathjak107

Senior Member
you have to remember that nyc rental markets have more then 1/2 the rentals stabilized so they set the floor for rentals ... those apartments outside of stabilization are not cutting rents since stabilized rents will not fall lower .

the new laws our idiot politicians put in place hurt landlords so once a stabilized rent is temporarily lowered that becomes the new base . you can't ever bring the rent back to what it was and then get the yearly increase .

that lowered rent becomes the base and all increases forever are on the lower amount .

we are seeing a months free rent advertised , but not rent decreases for the most part .

homes are still selling since the areas most who can afford homes in nyc are slim so demand is still high .

the co-op we were originally interested in which is down the block is going for more than last year .

the supply of nice homes is very low after all the buying we saw ...my son sold his scarsdale home in two days and had a bidding war on it ... the home he bought was sold to him the day it came out .
 

StarSong

Well-known Member
@mathjak107, thank you for the inside scoop on NY rentals and how the landlords get through down periods without creating long-term damage to their bottom lines. Sure explains the advantage of offering a free month or two over lower rent.

A given area's real estate markets and rental are often much more complex than they appear to an outsider.

Houses here also sell within days - many are gone even before they hit the listings. For the past few years when a local house lingers for 10 days without a Sold, In Escrow or Offer Pending sign we wonder what's going on. Presumption is that it's either overpriced or has serious problems.

Don't you think these rapid sales are at least partly due to Zillow.com, Realtor.com and other websites? Potential buyers do a lot of internet sifting and shopping before buying. They can get interior photos, drone photos/videos, and very specific descriptions from the comfort of their own homes.
 

Liberty

Well-known Member
Location
Texas
Thank you for the correction.

Looks like my speculation regarding Florida was wrong. I think it's economy is less driven by tourism than I thought it was. There are several articles I found saying that the Florida real estate market is booming these days.
Florida is driven by retirees with money who don't want to spend half of their life "behind closed doors", suffering through brutal winters.
What's not to like about beach, sand and sun during the winters?
 

needshave

Member
Location
Ohio
Original Poster
Unfortunately, I have a difficult task. A family member passed and the family wants to sell house and commercial property so I'm trying to prepare to sell both, But I'm two and 1/2 hours away, so travel time and other requirements is probably going to place the properties availability to sell well after the first of the year, So my concerns are with what the property value impact will be after the election and if this pandemic every lifts. In Ohio Covid is starting to spike again. I have the option of seeing properties as is, but of course no one wants to do that.
 

StarSong

Well-known Member
Unfortunately, I have a difficult task. A family member passed and the family wants to sell house and commercial property so I'm trying to prepare to sell both, But I'm two and 1/2 hours away, so travel time and other requirements is probably going to place the properties availability to sell well after the first of the year, So my concerns are with what the property value impact will be after the election and if this pandemic every lifts. In Ohio Covid is starting to spike again. I have the option of seeing properties as is, but of course no one wants to do that.
Are you the executor?
 

Aunt Bea

SF VIP
Location
Near Mount Pilot
I agree with others that the current low-interest rates should help to broaden the market and support a higher selling price for an attractive property.

IMO you need to balance the selling price with the monthly carrying costs to maintain the property.

Sometimes it's better to accept a lower sales price to stop the ongoing monthly expenses and the lost opportunity to reinvest the proceeds of the sale.

The hardest part may be keeping all of the relatives and armchair quarterbacks in the family happy.

Good luck!
 

Liberty

Well-known Member
Location
Texas
Hurricanes and humidity.
Way better than half your life every year suffering a" life indoors brutal winter" or wearing 3 or 4 layers of clothes, shoveling snow or trying to drive in it. Been there and done that for too many years. Like mom said "you get used to hanging if you hang long enough though, huh...lol.
 


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