The crisis caused by COVID-19 raises the question of whether or not it is wise to invest in real estate in the time of coronavirus.
Investing in real estate can help diversify your portfolio and can be a great way to supplement your income. However, success in real estate investing depends on your strategy and your understanding of the risks involved in this business.
How to invest wisely
As with any investment, it’s not wise to jump in and begin spending money with no strategy in place.
Investing wisely means understanding the balance between supply and demand. When supply is high and demand low, it is possible to purchase property with big discounts. The demand for residential space will not decrease even in the face of COVID-19 because people will always need to have a roof over their heads.
For this reason, a recession can open up opportunities to invest in real estate.
A house can still be considered a stable investment in times of crises especially when you consider the location of the property.
Location matters since it will have a large impact on the home’s value. A great location will remain an asset even when the real estate market fluctuates in the future.
Some investors worry about limited profits due to the COVID-19 pandemic. However, this belief might not necessarily hold true. Redfin reports that home prices were up 2.8% year over year in June on a national level.
Prices are up in Charlotte, NC
One of the best locations to consider is the Queen City of Charlotte, North Carolina. In the real estate sector of Charlotte, NC, the average sales price was up 9.9% in 2019 (compared to 2018) based on data from Canopy Multiple Listing Services, Inc. (CMLS).
In fact, the year-over-year home price appreciation in Charlotte is the third best in the United States, according to S&P CoreLogic Case-Shiller Indices, the leading measure of UShome prices.
In February 2020, Phoenix, Arizona topped the list with its 7.5% year-over-year price increase, followed by Seattle, Washington with a 6% increase, and Tampa, Florida and Charlotte with 5.2% increases.
Raising the bar on virtual home tours
For now, physical viewings of properties have become almost impossible due to the coronavirus crisis. For this reason, sellers and buyers now resort to conducting virtual home tours using tools such as Immoviewer, Matterport, Kleard, and others.
For the potential investor, the best resource during this time is an experienced real estate agent who is well versed in digital technologies that will be used to show off the home in the best light.
Since much of the transaction will be reliant on technology, seasoned real estate agents will know how to use the right lighting and angles that best show off the property.
Ask our team at Valarie R. Brooks Real Estate to show you houses for sale in North Charlotte, NC so you can start your real estate journey here. Contact us by calling at 704.488.5458 or sending an email to Valarie(at)ValarieRBrooks(dotted)com.