Pandemic brings great changes in many aspects, including the real estate industry. Vassilis Milionis stated that the real estate stock has a different status. The situations are affecting the stock in the real estate market, which can be seen quite clearly on some of the top stock changes. For example, the Real Estate Investment Trust (REIT) of Pebblebrook Hotels (NYSE: PEB) is increasing significantly close to 20% on June 5. Park Hotels & Resorts (NYSE: PK) is also the same as around a 19% increase.
Even though the stock shows a promising increase, in the end, because of COVID-19, the number decreases from the expectation. The expert predicted it would be 20% of the unemployment rate. However, it came up only at 13.3%. Even though people see it as a good thing, it is not that good, in reality. The number doesn’t fall lower than the early projection. However, 13.3% is still bad. This number of people who got lost in this industry shows something wrong, and it has some effect on the real estate stock and market.
The question is, is it a good time to invest in real estate stock? As a high-value investment asset, the property is still seen as one of the good investment choices. According to Mr. Milionis, the stock is still there. And, there are a lot of them. It only needs a simple push or a significant pointer that can boost the transaction.
The COVID-19 vaccine or the flat or lower infection rate is one of them. It will bring the market buying strength back. People’s trust in this industry and its future will also increase. Thus, the transaction on the market will also be revived or the best way to say it is normalized.
As for homeowners or people who are interested in investing, this real estate expert advice not to hesitate. Today, the mortgage rate has been lowered with the 2-year fixed rates. Furthermore, the rates have a great chance to drop even lower. So, it is a good chance to invest.
It does look bad for the homeowner who is going to sell their house. However, Vasilis Milionis said that the falling price of the property wouldn’t last long. Historically, the value of the property will return to normal and even increase in the future. Once the market moves, people will also see the true value of this investment.