About This Lesson
One industry that many people have overlooked during the recent quarantine is the real estate industry. Many people are dealing with being evicted from their homes and apartments, so it is not the time to look into buying a house for most people. However, despite all this, the industry is still booming. Here are five impacts that the COVID-19 pandemic has had and will have on the real estate market.
1. Technological Advancements
Just like every other type of business right now, the real estate business is facing unpredictable challenges that it will need to deal with to stay afloat. Whether it needs to improve its finance document management, show off properties, or find new clients, the internet and other forms of digital technology are going to be helpful in moving forward. After the virus is under control, it is likely that life will never go back to how it was before, and these advancements will be useful for years to come.
2. Virtual Tours
Because of new social distancing guidelines, it is more difficult for real estate agents to schedule in-person tours. However, most people would prefer to see and experience a house before deciding to buy it, so real estate companies have been forced to come up with a solution. Much of the time, this solution is virtual tours. These tours can be done over video conferencing, or, in special circumstances, there is software that can create a complete virtual tour that can be taken at any time on any device. This creative use of online technology shows that real estate is keeping up with other industries during these hard times.
3. Attraction To Less-Populated Areas
People are becoming more cautious about the number of people they are around regularly. Because of this, cities are becoming less appealing than less populated areas. Many people are getting the idea to move out of cities and to the suburbs to avoid as many people as possible. Even people who do not currently have the resources to move out of the city may decide in the future that they do not want to deal with city life and instead elect to move to a less-populated area.
4. More Competition
With fewer people selling houses to be put on the market and more people looking for homes than ever, there is bound to be some intense competition among people looking for homes. Some people are resorting to underhanded tactics by abusing social distancing guidelines to prevent people from getting close to the houses they want to view. If you are looking to get a new house during this pandemic, be prepared to be aggressive in your searching techniques. Even if you do manage to find a place you like, prices are high right now, and you could be spending more than you would like.
5. Pricing Issues
After an initial dip in prices, supply, and demand when the United States first went into quarantine, everything has been steadily rising once again. In fact, real estate prices are now higher than ever. However, this creates some issues, especially for more expensive houses. Houses that cost more than a few hundred thousand dollars are difficult to sell because many banks are not currently giving out loans large enough for most people to afford houses in that price range. Of course, most people are not buying houses that expensive, so this is only an issue for the upper-middle class and above.
The real estate industry has faced many problems in the past few months, just like everyone else has. However, just like everyone else, the industry refuses to be shut down. The innovations that are constantly being developed are impressive both here and in other industries. If you currently have the resources to purchase a new home, now might not be the best time, but if you are determined, then it is definitely still possible.
