The U.S. economy is not in the best place due to the COVID-19 pandemic. It has had a negative impact on a number of different industries. However, the real estate market has continued to move forward because of being deemed “essential.” Dr. Navid Vahedi has been investing heavily in the real estate markets, particularly within Texas and Florida.
Dr. Navid Vahedi identifies that even before the pandemic, the real estate market was better for sellers. There was a limited inventory of homes. As such, if a seller chose to sell their home, they typically wouldn’t have to wait long before receiving an offer.
With the pandemic, it has made it even harder to see an inventory. Sellers decided to postpone their plans of selling.
As states, including Florida and Texas, are choosing to open up, Dr. Navid Vahedi is starting to see a change within the real estate market. People are starting to move forward with their lives, including selling their homes. According to the National Association of Realtors, there are more houses on the market now than there were in April.
As an investor, Dr. Navid Vahedi is excited to see the real estate market bouncing back. There are more homes out there, making it easier to have a selection. With more houses, there’s also the possibility of having room for negotiation. Dr. Navid Vahedi explains that when there are multiple homes for sale in the same neighborhood or with similar designs, it makes it easier to play the sellers against one another. The sellers will often reduce their homes in an effort to undercut one another – and that leads to better investment opportunities.
Dr. Navid Vahedi has been keeping a close eye on the market as the panic caused by the pandemic has started to slow down. More people are selling homes. The home values are starting to rise, too. According to the Mortgage Bankers Association*, mortgage applications are on the rise from April to May.
While Dr. Navid Vahedi is still watching the market before diving in, he’s excited to see that there are new opportunities. Although it could still take a few months for the market to get back to where it was in December or January, it is starting to move in the right direction.
Dr. Navid Vahedi is also quick to acknowledge that there’s a reason why he focuses on real estate investments in Texas and Florida. The cost of the homes in many parts of those states is considerably lower than the average throughout the country. With his home in Los Angeles, CA, he is able to see a very different real estate landscape in Texas and Florida than in California. It’s one of the reasons why he got started and why he continues to watch the market closely for his next opportunity.