After years of the unstoppable rise in housing prices, the first decreases are already taking place. The real estate market goes down both in rent and purchase, which reach a 10 percent price decrease in some cases.
On the other hand, the coronavirus crisis has brought out a good handful of apartments for rent. In this article, we are going to talk about the impact of Coronavirus on the real estate market in the USA. Then, we will give you some proven strategies to prepare the real estate market recovery after the COVID-19 outbreak ends.
US Real Estate Industry vs Coronavirus
Since the beginning of the year, the United States had already started 2020 with more uncertainties than certainties in the real estate market, despite having had a sales boom during 2019. The fear of a possible recession and the lack of inventory marked the first months. Now, the Coronavirus seems to have arrived in the country to give the final thrust to a minimum sale for the first half of the year.
Social distancing and quarantine have affected US cities a lot. According to the latest report by the National Association of Real Estate Agents (NAR), the virus outbreak reflects on fewer sales on the real estate market. The property sales decreased by nearly 28% in February alone.
"If sellers withdraw their real estate from the marketplace, it will reflect low inventory conditions," says Jessica Lautz, NAR vice president of research.
Naturally, sellers follow the medical guidelines recommended by the authorities and the World Health Organization itself. Therefore, they decide to withdraw their homes from the lists due to the impossibility of following up with potential buyers. Also, this action is to avoid risky contact with them and risk contagion from COVID-19.
Approximately 40% of the more than 3,000 real estate agents surveyed between March 16-17 reported that they had stopped open houses to prevent the spread of the disease. Likewise, 27% have seen that buyers should use hand sanitizer when entering a property, while 6% observed that buyers should wear gloves, according to Realtor.
Specialists believe that the current context of the pandemic would increase the inventory shortage that was already reflected even before this entire health emergency.
But the fear is not only reflected in the sellers, since in the cities where the registered cases of the disease have increased. Many probable buyers fear the loss of their income and their jobs due to the quarantine they must maintain. It is a situation that does not provide them the security to start the biggest purchase of their lives and pay a 30-year mortgage that they don't know if they will be able to cover.
"The activities of home buying has currently slowed while listening to precautions on how to stay healthy," said Lautz. But "However, the home buying activity will pick up after quarantine is lifted, as buyers will be attracted to low-interest rates," he said.
How To Prepare For Market Recovery
While you are still at home, it is good for you to focus on the internet marketing approach. If you need any help selling your home faster, consider our real estate video recording service.