In a short time, the real estate market went from a busy and competitive market to a much slower one as a result of the coronavirus. Once packed, many open houses have become more sparsely attended while other open houses have been canceled altogether.
Understandably, many property owners are suspicious of having strangers examine their property and potentially spread COVID-19. This is just one of several ways that the real estate market has changed as a result of the coronavirus. This article examines some of the other profound changes that have recently occurred in the real estate market.
Many Buyers Suspend Searches, but the Real Estate Market Thrives
In response to the coronavirus, many property purchasers have momentarily suspended their search. The hesitancy many are experiencing to purchase property is fueled both by anxiety about COVID-19 as well as the volatile stock market. While Florida has been one of the states hardest hit by the coronavirus, this uneasiness is experienced throughout the country and impacting realtors. Ironically, this uneasiness comes during a time when purchasing homes and other properties are more affordable than they have been in years.
For example, Freddie Mac reports that interest rates hit before the coronavirus outbreak hit a near 50-year low at 3.29% for a 30 year fixed mortgage. Despite hesitancy among some buyers, Florida’s housing market still surges strong. While some buyers are deciding to put their property search on pause, many realtors are seeing the Florida market remain active and even busy. One reason that financial experts attribute to the real estate market’s continued growth is that some buyers and investors still view housing as a safer type of assets than other equities.
The Potential for Real Estate Challenges
As the COVID-19 outbreak is still in an early part of its progression, many unanticipated challenges still lie ahead. One potential obstacle that might hamper the real estate market is if travel restrictions are created, which means that buyers might be temporarily prohibited from viewing a property. With the inability to examine properties in advance, this might result in increased growth in people who decide to rent a property.
Increased Efforts to Limit COVID-19 Exposure
While the days of open houses might have temporarily ended, interested property sellers are still finding ways to list properties. For example, many realtors are choosing to create virtual tours rather than offer traditional open houses or tours. While virtual tours do not provide the type of information that in-person shows do, they can help interested parties gain a better understanding of a property without the risk of coronavirus exposure.
When it comes to the previously common realtor tasks like shaking hands and touching light switches, realtors are still advised to exercise caution. For example, many realtors have taken to wiping commonly used areas with disinfecting wipes before touching them.
Speak with an Experienced Property Law Attorney
The real estate market is full of challenges, even for the most experienced realtors. If you need the assistance of a knowledgeable property lawyer, do not hesitate to contact the Adam Law Group today to schedule a free case evaluation.