It is in times of crisis that opportunities are created and in this time of the Coronovirus it will not be the exception. As we have been analyzing it with our different partners and the University of Florida (FIU), we think that this crisis will be different from the previous ones referring to the real estate market in Miami/Florida and more if we compare it with the 2008/2009 crisis.
A continuación te explicamos las razones por las cuales el mercado inmobiliario en Estados Unidos se mantendrá estable:
Below we explain the reasons why the real estate market in the United States will remain stable:
- The American banking system is solid and very liquid.
- Since 2008, mortgages/loans were no longer given to people with bad credit ratings, therefore portfolios are much healthier. The percentage of loans rated as “subprime” (low credit rating) has been almost zero in the last 11 years.
- Currently, people who have purchased a property have paid an initial % of the value of the property at the time of purchase, which did not happen in the 2008/2009 crisis because people could return the asset or in many cases left the property, since they had not provided capital or almost nothing for the purchase which did not mean a loss for them.
- The U.S. government is supporting businesses and the economy in general, giving subsidies to certain industries and people directly, in addition to allowing them to access to credit with very low interest rates that can reach 0%.
- American banks are providing payment flexibility or refinancing of mortgage loans (lease/mortgages).
- The United States federal government has approved the economic rescue plan, which provides unemployment benefits to people made vulnerable by the crisis caused by the Coronavirus.
- So, there will be investment opportunities certainly for people who have cash and there will be investors who need liquidity and will have to sell, but as always in times of crisis, technically we will be in a recession, although we do not believe that there is a devaluation of the Miami/Florida real estate market. Real estate prices have continued to grow historically and the only time there was a correction was in the 2008/2009 crisis.
