As most realtors can tell you, spring is often a busy time for buying and selling property. COVID-19 and its resulting chaos, however, has pushed both property buyers and sellers into uncertain areas. Many shelter-in-place orders have forced realtors to cancel open houses which have led to the postponed sales of a lot of property.
Even during the pandemic, however, many people in Florida are still interested in purchasing and/or selling property in the near future. Realtors will likely be involved with many of the real estate sales that occur in the state, which is why realtors must have a reasonable perspective of what the current housing market looks like.
Reduced Property Prices
The federal government has offered relief through cash payments. Many lenders are also offering mortgage forbearance options during the pandemic. This is in part because with unemployment numbers increasing each day, a growing number of people will be forced to sell their property or enter into the foreclosure process.
For those looking to purchase real estate, this means a likely reduction in home prices. The degree to which real estate prices will decrease will be influenced by many factors including unemployment. This could very well result in pricing drops in locations that were previously exclusive or too costly for some buyers.
Increased Available Real Estate Inventory
Buyers can also likely expect an increase in the number of homes that are available to purchase. There is currently an inventory of many sellers in Florida who still reside in their property and who do not want agents and potential buyers as well as any other strangers passing through the property.
Once these sellers realize that the risk of coronavirus exposure is minimal, there is likely to be a substantial increase in the number of properties that are available for sale.
While there is likely a smaller group of buyers who are waiting for the pandemic to end or for risks of exposure to decrease further before purchasing a property, the large inventory of real estate could mean buyers would be presented with various opportunities.
Interest Rates Will Likely Remain Low
In the last year, mortgage interest rates got lower than many people expected to ever see. Interest rates are likely to continue to remain low during the pandemic. The general perspective of experts is that interest rates will continue to remain attractive and competitive. For people who were considering buying real estate, the pandemic era might be an attractive time to do so. Other purchasers, however, are deciding to focus on the long term rather than attempting to time the market.
The best realtors, however, should advise clients that attractive interest rates are just one of several factors that can make a property purchase attractive.
Speak with a Knowledgeable Property Law Attorney
The real estate process is a complex one, and it has only been made more complex as the result of the coronavirus pandemic. If you need the assistance of an experienced property attorney, do not hesitate to contact the Adam Law Group today.