While you're stocking up on toilet paper and other essentials, be sure to stock up your knowledge on how the Corona Pandemic may affect the real estate market.
Here are five insights to arm yourself with:
Interest Rates - Take advantage now! A percentage difference in your interest rates could save or cost you tens of thousands of dollars over the life of your loan. How? Take your average, conventional, 30-year fixed loan with 20% down. For every $100,000 you borrow, you'll wind up paying more than $45,000 in interest over the life of your loan. That's with a pretty standard interest rate of 4.5%. Drop it to 3.5%, and you're looking at under $30,000 in total interest. Last week, the interest rate got as low as 2.5%. Refinance/buy now. These rates won't last, and newly listed properties may inflate their asking price as they know you'll now qualify for a bigger loan.
Rental Market, Attention Landlords - People are staying home and traveling less. What's that got to do with the price of tea in China? (Too soon?) As the tourism market thins out, so will the short-term-rental (STR) market. I predict we're about to see a flood of Long-Term Rental (LTR) listings here in New Orleans. If you're thinking of renting a place long term or switching from short to long, list now, I can help!
Rental Market, Calling All Renters - If you've got flexibility on your current lease, sit tight. You may have a lot of inventory to choose from in the near future (see above). That said, make sure you're savvy about reviewing your lease. The same landlords insulating themselves from the thinning STR market may want their property back and you out ASAP when it rebounds. On the other hand, if you're looking for a lease that's 6 months or less, you may be in luck!
Commercial - Recent trends in experiential and communal/shared experiences are being hit hard, as are businesses that rely heavily on tourism, and/or the conference and convention business. Product shortages will also impact retail. If you're looking to sell or lease your commercial space, you'll need to craft your marketing very carefully. I can help.
Market Down - But what about the market?! The downturn in the financial markets may be bad news for your stock portfolio. But, a wise real estate purchase is often a great long term investment strategy, and a sure way to diversify. More to come when we learn what this fresh injection of federal dollars will do to the market.
Last but not least, try and remember that this too shall pass. We're not sure how long it will take or what it will cost our friends, our family, and our livelihoods. Keep calm. Carry on. Please send your questions my way. And in the meantime, God bless all y'all.
Voted Neighborhood Favorite by Nextdoor, Team Cool Murphy is a top-producing, licensed real estate team based in New Orleans, brokered by Cool Murphy, LLC.
Celebrated for her next-level creative approach to real estate, Elisa Cool Murphy is an award-winning, top-performing agent in New Orleans and the founder and leader of Cool Murphy, LLC.
Contact Her -
email: cool@coolmurphy.com
Facebook: @homeinneworleans
IG: @coolmurphynola
YouTube: @coolmurphynola
phone: 504-321-3194
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