Many friends, family, past clients, and neighbors have been asking how the recent plunges to the stock market in the wake of the coronavirus have affected real estate locally.
One key way that this trend has changed the market is that the demand for homes with a value of twice the median price in a single ZIP code is dropping. That means if you have a higher-priced home here in the area (relative to the median price), you might not see as much activity around it. When the stock market drops or behaves volatilely, it decreases consumer confidence, causing people to pursue homes they feel are a safer option, or even to rent instead of buy. We’ve seen some people take their money off the table out of fear of a downturn, especially if they’ve lived in their home the past two years.
You can also take money out of the stock market and put it into real estate for a more predictable cash return. You can put your money into real estate IRAs and self-directed IRAs, and it will also be tax-deferred.
We’re helping a lot of people to build predictable returns from their real estate investments— sometimes up to 11% returns every month or quarter. If you’d like to learn more about how to do this, reach out to us. We’d love to schedule a complimentary consultation with you.