Most of the local real estate offices have chosen to close, and allow their realtors to work from home in order to minimize contact and try to keep everyone safe. Our
Will real estate prices go down with the COVID-19 panic?
COVID-19: The impact in real estate market and Investors
As this global pandemic affects entire states and people, the government and authorities are working hard to face this deadly crisis. Planning for certain solutions and medications is the utmost priority. Most of the industry, offices and markets are getting themselves isolated and temporary closure to help contain the spread of virus. At this point we are already thinking about the consequences and the possible effects on different sectors. Besides, this global pandemic is still widely spreading and the cases are more increasing than what we expected.
To what extent would this pandemic affect the real estate sector?
Because of these, the economy now is the most affected sector. In which, it is critical nowadays since stocks and other aspects of it drop in no time. As this global pandemic continues, real estate sectors, investors and occupiers will also suffer to its potential effects and possible risk is highly anticipated.
The spread of this virus leaves the whole world shocked. Due its rapid transmission to most of the country around the world. Yet medical and the government authorities continue to do their part to assist the situation. We can’t deny the fact that business closure really take a big part to why our global economy has nearly reached its critical level nowadays. But, the situation is very predictable and its going to be worst.
In particular, the real estate industry is one that will adopt it’s “business as usual” thing. With some sort of changes on how agents operate, it is very clear that the market will perform less than normal in this situation. Therefore, during this crisis, what could be possibly the expectations of buyers and sellers from the real estate market?
1. Lower Sales
This effect is already anticipated by everyone in every crisis we encounter. By the solutions mandated by the government, sales will definitely drop due to the lack of demand of business. Food, medical stuff and medicines are the most important necessities during this pandemic time. With that, the demand for leads are decreasing which will also lead to the drop of sales as expected. Market transactions are slowing down as some of the buyers may delay or postpone their property arrangements/purchase. As the situation still persists, sellers will also hesitant to lower their prices as they are also in need financially and of course to provide the right amount above to how much they invested.
2. Real estate consultant will look for different ways to connect with their leads
Amids of the government advice to exercise social distancing, coffee shop meet ups, face to face sales pitches will not temporarily work out. Since everyone is wary about the public health risk. Virus will transmit if a person which is a the carrier of the virus will have a close contact with another person. Due to this, agents will have a hard time seeking for alternative ways to connect with their respective clients. Closing a deal while having virtual interaction is the most challenging part right now. Well, we can’t deny the fact that meetups arrangements are still the most effective way in this kind of business.