If you have clients looking to buy or sell their property, you may want to let them know what to expect in the real estate markets. Behaviors have changed since the outbreak of the Coronavirus, such as how we now have to practice social distancing, and it is difficult to know how this virus will impact real estate handlings in 2020 and beyond.
One change put into place is the 6-foot distance rule between sellers and buyers. Before this distancing rule, home sales had been at their highest in more than a decade. Experts in the real estate industry expect these sales to continue increasing, but at a slower pace than before the outbreak.
How Coronavirus Will Impact Future Real Estate Markets
A ‘wait and see’ look began after February 2020 when public health officials announced the alarming spread of Coronavirus. Whether or not this announcement has ‘frozen’ the real estate markets is one of the homeowner’s primary concerns. These are stats on those trying to buy or sell real estate:
- Coronavirus impact on homeowners selling their property– Up until March of 2020, the virus had little effect on those trying to sell their property. After this point, the markets showed a drop from 87% to 69% in sales. Sellers who took their property off the market increased from 3% to 16% after the outbreak.
- Coronavirus impact on clients looking to buy property– In March of 2020, the market on buying a new home was optimistic. After the virus news took effect in the country, there was a drop from 75% to 43% in those looking to buy a new property.
Experts believe these drops in numbers are only temporary. It is believed by the National Association of Realtors that the impact on real estate sales due to the virus is a ‘temporary softening’ of the market and that it will rebound once this crisis has passed.
What to Expect in the Real Estate Market
For the remainder of 2020, the market for real estate sales and purchases depends a lot on how the virus continues to spread and how long social distancing rules stay. Real estate experts predict the real estate markets will experience a 15% drop in home sales over what the industry saw in 2019.
As the economy becomes more financially strained, there may be more homes put up for sale. Those sent home from their jobs and are now working from home offices may benefit from those sales. The markets are expected to increase homes for sale at lower than average prices for the remainder of 2020. In 2021, these prices are expected to recover, but it will depend on the Coronavirus’s continued impact.
To help your buyers or sellers understand what to expect from the market’s future can be challenging, as so much depends on how the virus continues to impact our country. The one answer to this question is to remember the previous real estate market trends as you keep yourself informed on the social impacts of the Coronavirus.
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