In one way or another the covid-19 pandemic has shaped the housing market across the globe. One thing that is consistent is that the amount of rental property has gone down, and the amount of housing for sale has gone up. People that cannot afford to buy homes have been left out on the streets, while people that can afford to buy have had the pick of the litter.
Housing sales in urban areas increased because the lockdowns allowed many people the luxury of working from home. Now that things have loosened up a little, and there are less lockdowns than before, the same people that relocated outside the cities to work are still pushing to continue working from home, even if that means changing jobs.
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What this means for people that rent is that they can either come up with a way to purchase a house, they can move in with relatives, or they can set up a tent and become one of the many homeless people that have been forgotten. This is not the ideal scenario for any country, and it shows that there is a need for rental housing.
Apartments are springing up in many locations, which you would think could offer the housing that we all need. But the fact is, the apartments that are going up are being rented out for amounts that are out of reach for most families. What it boils down to is that the if federal help is not offered to cut the costs of rent, the families that are currently living on the streets will continue to do so.
Those people that had been in the process of purchasing their homes have had the opportunity to refinance their homes at an all-time low interest rate, which is also why so many people sold and bought houses. The interest rates allow new homeowners the ability to get loans with affordable payments, and the current loans were able to get refinanced at extremely great rates, as you can see when you use a comparison website like iSelect.
The states across the globe that are showing the most impact from covid on the housing market are those with the most populations. The bigger cities have had increases in the homeless population, with many being families that lost their rentals due to the owners of the property selling out from underneath them.
The people that have rentals try to hold on to them and hope every day that the owner is not going to sell it and leave them out on the street. Rentals are so hard to find available that it makes it nearly impossible for a family to find something if they are evicted out of their current living conditions.
New South Wales is the state that has been hit the hardest by the pandemic. It is estimated that rent has risen 8.9% and that the average selling price of a house has increased up to 1.5 million. This makes Australia one of the highest priced housing markets in the world. Young people trying to get their lives on track are finding that they do not have the credit to be able to get home loans, and the rent is so high that they must pack numerous people into one house just to be able to afford it.
The only way that people can prepare for something like this is to have a nest egg built up. Money put aside every month so if the rentals get sold, they will have the money to move, if they can find a place. If you live in a house rental and are not able to purchase a home, it would be a good idea to start looking into moving into an apartment complex. Soon, that is the only rental type of housing that you will be able to find.
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