Welcome to San Diego Blog | May 7, 2020
Real Estate remains hot amidst Covid 19
As the coronavirus pandemic continues to take hold around the world, the thought of how it’s going to affect the U.S. real estate industry is probably foremost in your mind. What are your options as a realtor? What happens to mortgages? How will buyers and sellers react? And how are you going to conduct your business online now that most of us are staying at home due to the COVID-19 pandemic?
In fact, even under current conditions, plenty of buyers and sellers are working with agents to close deals together. Technology has allowed both sides to adapt rapidly, thanks to increased use of virtual tours, and the use of less conventional FaceTime walk-throughs, drive-by signings, Zoom meetings, and so on.
Although interest seemed to have initially tanked as the coronavirus first reached the United States, data from Zillow has shown that, by Mid April, overall visits to for-sale homes had rebounded to levels -perhaps surprisingly- slightly higher than a year ago.
Still, the overall long-term momentum in the real estate market remains positive. There is plenty of data to suggest that markets throughout the country, especially cities with big year-over-year numbers, have a pent up demand for housing.
So far, predictions on how the coronavirus will affect the U.S. housing market range from dire to slightly more optimistic. Properties in the hospitality industry are the ones that are most affected, especially those located in popular tourist destinations. And when it comes to housing, the second home, and luxury markets are the residential real estate industry’s hardest-hit sectors.
Real Estate is still a long-term investment, not a short term one. There are many buyers that even now are suddenly empty nesters or need to downsize or the opposite—get into a larger home because they have a growing family. Whichever the case, many buyers have to continue moving forward with transactions. Real Estate is still a hot market.
With social distancing and shelter-in-place guidelines expiring at the Federal level last week, many state governors have started considering steps to re-open their local economies.
As a result, we may quickly start to get an even clearer picture of housing demand across the nation in the next few weeks to unfold.