2020 has been quite a year with the COVID-19 pandemic, the temporary closure of non-essential businesses, and the reopening phases following new safety guidelines. One question that many people who invest in residential real estate have is what, if any, sustained impacts the pandemic will have on residential markets moving into 2021.
Fortunately, residential properties were not greatly impacted by the pandemic. Rather, this sect of the real estate market fared well. Some of the more notable trends you’ll want to pay attention to as we close out 2020 and move into 2021 include:
1. Millennials are becoming the top type of homebuyer.
Millennials were content to rent and live in tiny apartments. However, when the pandemic hit, they quickly changed their minds because they now required more space to spread out for many remote work scenarios. Additionally, millennials were faced with social distancing guidelines based upon household and thus no longer wanted to live isolated from other people. As a result, millennials are buying homes at a rapid pace. As a real estate investor, you need to be aware of this demographic trend if you are looking to sell fix and flip residential properties.
2. Residential property prices are on the increase.
Residential property prices continue to increase due to the heightened demand for single-family homes where people have plenty of space to socially distance and easy access to the great outdoors. For investors selling residential properties, this is great news. For those looking to rehab properties, you’ll want to put your focus on residential opportunities particularly in areas with more access to the outdoors, as the demand is projected to continue rising in these kinds of environments.
3. Securing mortgages with a direct money lender is still fast and easy.
In the residential arena, demand is high. If you’re a seller or looking to fix and flip a property, there is no time to waste. If you turn towards a private equity lender, you’ll be granted the opportunity to surpass the red tape and lengthened processes that come with obtaining traditional loans. With a direct private lender, you won’t have to worry about housing deals falling through because you had to wait to get financing. By using a direct money lender, you can have your loan approved and funded in as few as 48 hours.
4. New housing starts are increasing due to tighter inventories.
With the demand for houses on the rise, one investment you may want to consider, especially if you are finding it hard to find fix and flip homes in your area, is new housing construction. You can obtain financing from a private lender with as little as 10 to 15% down. Private loans allow you to build new homes, sell them quickly, and move on to your next project. Do not overlook this route as the housing market continues to undergo the ripple effects of the COVID-19 pandemic.
5. Small multi-family home sales are also increasing.
Not everyone is ready to purchase a single-family home. Another great residential real estate market trend that is worth noting is the rise in interest for small multi-family homes like townhomes and condos. These types of properties can be great investments whether you find fix and flip homes or decide to build new multi-family homes.
6. Private lenders will continue to have plenty of capital to put towards loans for residential property investments.
You don’t have to worry about securing financing for your residential real estate investments for the rest of 2020 and 2021. Direct money lenders have access to the money you need when you need it to close on your real estate investment deals. Plus, you only need minimal documentation to get approved.
While COVID-19 has impacted many other markets and industries, the residential real estate market is still booming. To find out more about direct money loans for residential property investments, with quick and fast approvals and loan periods between six and twenty-four months, please feel free to contact Sunset Equity at 866-291-3412 today!
We offer private loans for new construction and fix and flip residential property investments nationwide, except in Alaska, North Dakota, South Dakota, New York, and New Jersey.