Business

David Ebrahimzadeh Discusses The Impact Of The Covid Pandemic On The Real Estate Market

Published

4 years ago

April 20, 2021

The COVID-19 pandemic has had a huge effect on the United States economy as a whole and a major impact on the residential real estate market. The pandemic affected rental vacancy rates and prices and home sales in different ways. Major cities and suburbs were affected in vastly different ways.

David Ebrahimzadeh explains the effects that the global pandemic has had on the real estate market across the country, naming some of the problems that have come up and offering an outlook for future months.

Economic Disruption Leads to Distressed Landlords

Many people lost their jobs and were unable to pay their rent or mortgage, though temporary eviction and foreclosure protections did help. There were far fewer protections for landlords, and many landlords are on the verge of losing their properties.

David Ebrahimzadeh advises landlords to carry cash reserves to get through these difficult times. It may be too late for many landlords today, but those who are still holding stable properties should start saving today.

COVID’s Effects on Home Prices

The COVID-19 pandemic caused a noticeable drop in home sales across much of the country and a corresponding drop in prices. Economic uncertainty and stay-at-home orders stalled the home sales market, though as the pandemic eased thanks to the introduction of vaccines, the housing market has begun to recover.

Urban Rental Disruption

As the COVID lockdowns began, many residents of densely populated urban areas began to realize that their environment was putting them in danger of catching the coronavirus. People who had the economic means to do so and the flexibility to work from home began to buy homes in suburban areas 50 to 100 miles from the city they were fleeing.

Rental vacancy rates in the inner cities rose significantly while rental prices sunk to unprecedented levels. This caused real estate prices to soar in areas like Westchester, New York as Manhattan and Brooklyn’s residents departed. This also caused younger renters to be able to move into cities like New York where in the past they would have been priced out. It will be interesting to see whether the flight from the city will persist past the COVID-19 pandemic and whether these fleeing renters will come back after the danger has passed.

Suburban Effects

The primary effect on the suburban real estate market from COVID-19 was the sharp rise in home prices. Since there was a small supply of homes available, competition and prices spiked. The mobile and well-off people who were able to leave the cities could afford to pay higher prices.

As real estate sale prices jumped in the suburbs, rental prices escalated as well. A low supply of affordable rental units was strained as people moved away from the cities.

Overall Economic Movements

The real estate market often falls prey to general economic fluctuations. The major law that governs real estate markets is supply and demand. High demand and a low supply will lead to the highest spikes in prices. This situation happened during the spring and summer of 2020 in many areas of the country.

Unemployment rates soared due to the pandemic, and wages went down. Many people in the hospitality and retail industries lost their jobs entirely, while others were forced to take significant cutbacks in hours.

Inequality in the Housing Market

The COVID pandemic has caused the wealth gap between the haves and have-nots to expand even further. While homeowners with stable jobs saw significant increases in their wealth thanks to burgeoning equity in their homes, the working class largely fell victim to economic disruption.

Possible Outlook for the Real Estate Market

The National Association of Realtors predicts that the economy will rebound in 2021. Interest rates will remain stable while the annual unemployment rate will dip to 6.2 percent. Housing prices across the country may climb by as much as 8 percent in 2021.

It will be fascinating to see whether the short-term effects of the pandemic will continue. If people are continuing to be able to work remotely for a permanent time span, they may stay in the suburbs and rural areas.

Understanding the Housing Market

David Ebrahimzadeh recommends that property owners keep close tabs on the economy and on real estate prices in their area. While it is best to hang onto properties in the long term, it is a good idea to judge whether it is the right time to make an investment purchase.

As COVID fades, its long-lasting impact on the economy may continue. It will take decades before some industries fully recover. The housing market will continue to be affected by economic shifts, unemployment rates, and the mobility of American workers. Taking all of these economic movements into account, this may be a great time to invest in real estate.

Business

YesLoanz: How to Borrow Money Without Regrets

Published

10 hours ago

February 19, 2025

Matthew Wiles

The experience of dealing with a loan can vary, but it seems that there are more negative stories than positive ones. In fact, this is not the case, it’s just that such stories are better remembered. If you know how credits are structured, what the overpayment is for, and if you are sober about the burden, loans can be a good financial instrument to benefit yourself. How can I borrow money without regretting my decision? The experts at YesLoanz share their insights.

YesLoanz is an innovative lending platform that offers a wide range of financial solutions for real estate, business, and investment purposes. The company focuses on transparency and efficiency, providing borrowers with flexible terms and minimal documentation requirements. By leveraging modern technology and a customer-centric approach, YesLoanz simplifies the lending process, enabling clients to achieve their financial goals with ease.

Do You Really Need the Loan?

The first and main question to ask yourself is: is lending really necessary? A lot of times credits are taken out on impulse, be it to buy a new gadget on urgency, take off to a trip, or give an expensive present. If the goal is short-term, a credit card may be a better option, especially since most offer interest-free grace periods of one to three months.

However, moneylending is good when it works for you — it helps improve your financial situation, increases your income, or allows you to make investments. For instance, a loan for education or business development can provide more benefits in the long run than a debt for an expensive phone that will quickly depreciate.

Understanding Loan Terms

The moment one decides to go for an advance, the next step is to study the conditions well. Many people make the mistake of focusing only on the interest rate. You must bear in mind other aspects such as the annual percentage rate (APR), hidden fees, extra for being late, the chances of early repayment, and, lastly, the total overall overpayment. In some cases, the low interest rate is offset by high insurance fees and additional payments.

It is also important to understand how the percentage is calculated. The annuity gives you constant repayments per month with higher sums paid in total as interest, while a differentiated payment scheme reduces your interest costs with decreasing payments. If you realize that you don’t have the patience to delve into everything, then perhaps you should consider postponing your loan application or seek professional guidance from lenders like YesLoanz.

Choosing the Right Lender

Selecting the right bank or lending institution is just as important as choosing the allowance itself. The difference in contracts from one offer to another may be staggering. Let’s say one bank offers a lower interest rate, but at the same time requires additional insurance, and another gives a loan with a slightly higher rate, but without unnecessary payments. It is worth comparing the offers of several financial institutions before signing a contract.

Currently, there are many online services for comparing lending terms that will help you choose the most profitable option. Additionally, check the lender’s reputation by reading customer reviews, examining contract terms, and reviewing their financial ratings.

Assessing Your Financial Stability

Borrowers often get into big trouble when they underestimate their financial burden. Many people take out larger credits than they can comfortably afford, only to struggle with high monthly payments. According to YesLoanz financial experts, debt obligations should not exceed 30-40% of monthly income. Beyond that, this money will turn into a financial strain.

Creating a detailed financial plan before borrowing can help you understand how payments will fit into your budget. It’s also important to factor in inflation and potential risks, if you need to pay off the loan for several years. During this time, your financial conditions may change: salary levels can fluctuate or new family responsibilities can arise.

Planning for the Unexpected

In addition, it’s always wise to have a backup plan in case of financial difficulties. What if suddenly your income would decrease? Some lenders offer loan deferment or restructuring options, but it’s best to inquire about these policies in advance.

Emergency funds are useful for the repayment of any debts in situations of force majeure. Theoretically, any such fund must cover expenses for three to six months, enough to meet credit liabilities even under unforeseen financial contingencies.

Making Timely Payments

A timely payment is a good credit score saver. Non-payment draws charges and penalties, and negatively affects the credit history such that getting a mortgage can be tough in the future. You can set autopayment for deduction of the amount of the monthly installment so as not to get into trouble. If you have any difficulty in making payment, discuss the problem immediately with the lender and offer suggestions for a solution, canceling any missed payments that could result in a legal procedure.

Exploring Alternative Financing Options

Before borrowing money, explore alternative funding sources. For example, if you want the money for a short period of time, it might be to your advantage to use a credit card with a grace period rather than a consumer advance. In some cases, one may arrange zero-interest installment plans from the seller, which is way better than borrowing from the bank. Special government loans or some nonprofit organizations may offer financial products with advantageous market rates for a particular group or organization.

Beyond numbers and contracts, borrowing also has a psychological aspect. Before applying for a loan, you need to make sure that it aligns with your financial goals and that repayment will be manageable. Financial literacy plays a key role: understanding the basics of money management, budget planning, and credit mechanisms helps avoid mistakes and make informed decisions. With the guidance of YesLoanz experts, navigating the borrowing process becomes significantly easier, ensuring you get the right financial solution with confidence and clarity.

Credit is neither evil nor good in itself. It is a tool that can be used wisely or recklessly. A responsible approach to borrowed funds allows you to avoid problems and make them a useful financial instrument. Therefore, before signing a contract, it is important to carefully weigh the pros and cons, assess the possible risks and make sure that the loan will really be a step forward, and not a burden for many years.