The COVID-19 pandemic has toppled the status quo of everyday life. People, whole businesses and industries have all been affected. The US housing market has not been spared also by the gruesome pandemic. The pandemic made people lose jobs thus decreasing the average spending power of people. This resulted in people being conservative about buying houses.
This however has changed, over the summer, homeownership rates started to rise. People started buying homes in the suburbs and rural areas. If you might be wondering what your next move in the real estate market is, worry not as this is what will happen to real estate after the pandemic:
People Will Continue To Buy.
The pandemic has brought about a new normal. The demand for real estate has shifted from the city areas to the suburbs and rural areas. The crowded city areas proved to be dangerous ground during a pandemic as they registered a high number of COVID-19 cases. The congestion of the city is a major factor contributing to the spread of the virus. This shift in demand is making prices for houses and rent in city areas drop and prices for houses in rural and suburban areas rise.
The pandemic is making people seek out homes that are isolated and better. Also security l, both physical and low-risk areas during a pandemic.
Home Sales Will Drop.
Though people are buying more than during the onset of the pandemic. General home sales for the year will drop compared to previous years. The COVID-19 pandemic has caused massive layoffs creating increased unemployment. The economy will still be struggling to make a comeback by past the covid pandemic. This means the general population will lack enough purchasing power to consider buying houses. The real estate and housing market has been hit also by low inventory as people lost capacities to finish up ongoing projects and the ability to start new ones. Buyer confidence was also affected. These effects will linger on for quite some years post-Covid.
Home Office Requirements.
The pandemic has forced many people to start working from home. This has brought about an increasing demand for homes with an office. This demand has created a shift in the housing market where homes now need to incorporate a home office to cater to people working from home. New homes will be built with offices from now on as working from home is the new normal. Post-Covid houses will most definitely feature home offices as a norm, not an extra feature.
Virtual Home Viewing.
Due to social distancing, it has become a hefty task to get customers to view homes. Technology advancements have made home touring move online. Virtual home viewing has become popular. Post-Covid pandemic, virtual home viewing will be the new normal. Customers won’t have to visit physical sites anymore, they can access various homes at a touch of a button and in the comfort of their own homes. This also saves on costs of transportation to see various sites, the hassle of booking appointments and it has greatly reduced chances of customers getting coerced.