As the world self-quarantines because of COVID-19, real estate markets around the globe have been dramatically affected. Outside of restaurants and retail spaces, real estate relies on in-person connections and in-person negotiations more than just about any other industry.
This is why journalists have paid such close attention to real estate in the time of COVID. Indeed, people are very curious about how the corona virus has shaped the real estate market in their communities, and what the pandemic means for the future of home buying.
Buying Homes During COVID-19
With unemployment rates so high, you’re probably wondering, “Who could possibly be buying a home right now?” Not everyone was able to optimally time their real estate needs with the corona virus time line. Some prospective home buyers sold a home right before COVID-19 started to spread, and are simply looking for a home to live in, just as they would under normal circumstances.
Other people currently buying homes are individuals with a substantial cash buffer. These folks are able to take advantage of real estate uncertainty by utilizing their cash savings to purchase properties for a much cheaper price than normal.
Similarly, there are many prospective home buyers who have enjoyed continued job stability or job security. High-earning people in the medical field come to mind. As nursing salaries rise during this turbulent time in healthcare, perhaps some nurses are using their overtime pay and hazard pay money to purchase their dream home?
The Future of The Housing Market
While some real estate analysts are surprised by the recent flurry of housing sales, these analysts caution that the demand for properties could take a hit in coming months. One obvious reason for this diminished demand is that the unemployment rate has risen dramatically over the past few months, and so most people will not have enough money or savings to purchase a home.
On the other hand, some real estate agents are optimistic about the real estate market in a post-COVID world, as federal stimulus bills, tax-relief deals, flexible rent arrangements, and record-low interest rates will likely keep the real estate markets going strong in some parts of the world. The high unemployment will also keep property prices stable, which means that home buyers will not need to worry about paying inflated prices for nice properties.