Home buying, home construction, and selling homes is difficult in the best of times. The spread of COVID-19 and the restrictions put in place to halt that spread are both having a significant effect on the housing market.
Smart Home Construction in Harlingen has the know-how you need to maneuver through the housing market during this difficult time. Check out the questions and answers below to learn how the real estate industry is being reshaped by the global pandemic.
How COVID-19 Is Affecting Housing
1. How does shelter-in-place affect the housing market?
In this time of shelter-in-place and social distancing, many of our usual ways of doing business are having to change. The typical home-buying process involves in-person tours and inspections, but many of those sorts of meetings have been restricted by state mandates for the country’s safety. For now, virtual showings are becoming increasingly popular, with rules and regulations regarding this adjusted system coming out in real-time.
In general, both buying and selling have been depressed by the pandemic, and have slowed.
2. How has COVID-19 affected buyers?
According to a study carried out by the National Association of Realtors, buyer interest has dropped significantly since the pandemic began. As school closings and lockdowns have spread, buyers are becoming more cautious both regarding spending money and going to open houses. The number of open houses scheduled has also dropped dramatically. House buyers are concerned about the fluctuating stock market and future costs.
3. How has COVID-19 affected sellers?
As stated above, sellers’ options have been significantly reduced by the novel coronavirus. Open houses and home tours have been canceled. Sellers are less confident in their ability to get a good price for their homes, and some have decided to pull their properties from the market. Some of those who are holding open houses are limiting the number of entrants allowed in and taking precautions, such as using hand sanitizer and requiring visitors to remove their shoes upon entering.
Homes that sit on the market for an extended period of time often look less attractive to buyers. Right now, the likelihood that homes will sit on the market is high. Some real estate officials and boards have stopped showing the “days on the market” for listings to help.
4. How has COVID-19 affected home prices?
It’s likely that as demand for new homes slows, prices will also drop. However, given the fact that some sellers may remove their homes from the market, it’s not possible to estimate how drastically the prices will be affected. Sellers may also consider offering incentives to motivate buyers. Experts agree that we probably won’t be able to fully understand the effects the coronavirus will have on the real estate industry until after the pandemic has ended.
5. How long until things are back to normal?
This is really the million-dollar question. The Congressional Budget Office has made estimates regarding how quickly the economy and unemployment can change. Based on those estimates, it could take as many as 6 quarters for the economy to rebound, but even those estimates can’t tell us when things will truly return to normal.
