In this pandemic situation, any sector of the real estate industry was left unharmed. From investing in rental properties to the fixing and flipping of real estate game plans, COVID-19 brings traumatic experiences in trends and makes it hard to know what comes next. This has left many awestruck if a flip and flick strategy may be profitable in 2021.
To respond to this problem, we need to scrutinize how this pandemic has touched house flippers this year.
THE EFFECT OF COVID-19 WHEN IT COMES TO HOUSE FLIPPING:
LESS INVENTORY: Once lockdowns and home quarantine orders were issued, a lot of sellers expected that there would be a paucity of purchasers. As a result, they removed their listings to avert accumulating days on market. Some people took their property off the market to avert showings which can expose them to the coronavirus. This formed a shortage of property in the market and has made it hard for other house flippers to search the right properties to pull off this game plan.
A FALL IN THE NUMBER OF FIX AND FLICK DEALS; By the U.S Home Flipping Report 53,705 condos and single-family properties were flipped in the first quarter of 2020. This grows a lot of burdens in the real estate world because of the dropping numbers. We all hope that this coming 2021 will be a better year for the real estate industry to bounce back.
A DELUGED IN DEMAND; Because of the coronavirus, not only the Sacramento area but the entire U.S experienced also the lowest mortgage rate in history. As a result, most people can now afford to purchase homes. This was generally a positive trend for those enforcing the fix and flick real estate investment game plan this year. With this remarkable increase in demand and the shortage in inventory, marketing a fix and flick likely became easier when purchasers flooded back into the market, only to search for a few options.
SOARING HOME PRICES; A cutback in the supply of homes and an increase in demand resulted in soaring home prices. Besides, pushing appreciation through renovations, this build-up meant a positive return on investment when it came to flipping houses.
Are fixes and flick a profitable game plan? The answer is yes! In regard to the studies, it shows that flipping houses are fruitful and likely to remain worthwhile in 2021. Even if the coronavirus made an impact in the real estate world it does not fade the fact that more people in the Sacramento area and other states have their perspective on selling and purchasing with a positive outcome in return. To enhance your chances of success in the housing market of 2021, consider congregating an experienced and reliable fix and flick team.