Posted over 3 years ago

Real Estate Trends In the Age of Covid-19 (2020)

It is said that US housing market is not crashing amid Covid-19:

1. The US housing market is still holding strong with lots of potentials amid the Coronavirus pandemic despite slower sales and buys. Health scare, safety issues, financial uncertainties, and quarantining activities although are inevitable in the current situation, are considered outside playing-factors for the real estate market. The current trend is being seen with home prices are rising steadily that would create a favorable market for sellers.

2. Property prices are not dropping amid the pandemic which is an opposing trend to the expected. It is expected that in time of crisis, there would be less real estate deals both with selling and buying. This is because both buyers and sellers are hesitant to get involved with any deals in the time of uncertainty with health, safety, and finance. The upward trend warrants a strong real estate market.

3. The pandemic impact is only short-term for real estate. Buyers, sellers, and investors are looking to get back into the market as soon as all of safety measure are lifted.

4. Housing Market Recovery Index (HMRI) are in full-swing. The index is set at 100 as standard of full recovery. The closer to the 100 mark, it is an indication that the real estate is coming back. On June 27th, the HMRI of US real estate market was recorded at 95.8 with over more than 3.8 weeks which is a strong comeback with a very promising market prospect.

5. Different levels of pandemic impact at different locations for real estate. Because Covid impacts differently in Chicago than Los Angeles, the housing market at these two locations are also different. US housing market might be coming to a complete halt at one location but doing well at another. It would be comparing apples with oranges if we are looking at the real estate market equally across the board and make our judgement on the overall market crash during the pandemic.

6. It is a good time to buy property during the pandemic. Prices and mortgage rates would be at an all-time low during and at the end of the pandemic as there are fluctuations on sales and purchases. Meanwhile, sellers would be trying to sell their properties during and after the crisis as they might have been struggling to do so for some time. It would be an advantageous time to buy and invest in real estate during this time of crisis and a few years after, especially for young buyers and new investors. It’s advised to keep an eye out for low-price properties and start investing at this moment!

Topics: Real estate, Covid-19, Investment