Impact of Pandemic to Memphis Real Estate in 2020 and 2021
Updated: Jul 21, 2020
This pandemic has caused our economy in a chokehold. As of June 10, 2020, the CDC has confirmed there have been 1,973,797 Covid-19 cases in the United States and 112,133 succumbed to the coronavirus. We are experiencing something that we never thought will happen in our history during this time considering our technological advances.
People in the United States are starting to adapt to the “new normal” due to the effect of the virus. This includes staying at home, social distancing, wearing face masks in public places, and other safety precautions.
Real Estate and Unemployment
One of the biggest concerns for the real estate market is the unemployment. Nearly 43 million Americans have already filed for unemployment benefits during this time, according to the US Department of Labor. The unemployment rate in the United States rose to 14.4 as of April 2020 from 3.3 of April 2019.
Thus, it shouldn’t be a surprise that mortgage lenders are less likely to disapprove loans if the buyer is unemployed.
Is it safe to invest in Memphis Real Estate Market?
When it comes to Memphis real estate, Memphis is one of the hot markets. Besides that the prices of properties in Memphis is 11% lower than the average of Tennessee, Memphis has a high percentage of people renting. This means, that there is a great percentage of need for rental properties in Memphis, TN.
Investment is always a risk. But real estate is one of the safest long term investments available. Even if the market goes down, it will always come back.
The impact of this pandemic is still unknown for 2020 or even 2021. There are a lot of projections that experts provide. There are a lot of predictions from various real estate experts. But one thing is for sure, we may have entered the recession but the real estate market will always recover and will continue to grow over time.
Invest Memphis? For more information about single residential properties in Memphis, Tennessee, or you want to know more about Memphis turnkey, visit our website www.yourhome901.com or give us a call at +1 901 308 2815
Centers for Disease and Control Prevention. (2020). Corona Virus Disease 2019 (COVID-19) Cases in the US Available June 10, 2020, from https://www.cdc.gov/coronavirus/2019-ncov/cases-updates/cases-in-us.html
US Bureau of Labor Statistics. (2020). Memphis, TN-MS-AR, Area Economic Summary Available June 10, 2020, from https://www.bls.gov/regions/southeast/summary/blssummary_memphis.pdf