Real Estate Prices During Covid-19
The Covid-19 pandemic has damaged the housing market during its typical peak season. Buyers, worried of venturing out or no longer having a stable income necessary to qualify for a mortgage, are currently losing interest in purchasing a home. Sellers are also in a difficult place as they do not want to risk infection from strangers in their house which is also affecting real estate prices during Covid-19. Furthermore, they may be wary of selling for fear of a prorated price compared to a non-pandemic economy. No matter the reason, sellers are pulling houses and even those sellers who have left their properties on the market are receiving little to no offers from buyers.
The combination of these actions has led some areas to experience a 70% decrease in real estate activity. Finally, even though the resale market is in taters, construction on new homes is largely pushing forward uninhibited. This occurrence is going to lead to even more competition in many markets. With cases beginning to again rise and a warning that this will only worsen during the fall season, the market does not look like it will make a quick turnaround.
Potential Prolonged Issues For Real Estate and Covid-19
While the real estate market is extremely bleak, one bright spot is the availability of low-interest rates. This is beneficial to those who can prove they have a steady income. However, with soaring unemployment and tightening credit, only the most qualified buyers will be able to take advantage of the low rates. Another issue that is currently threatening the real estate market is the loss or temporary closing of real estate firms. Seattle based Redfin furloughed 40% of its 1500 agents until September. This is becoming a common theme for real estate agencies in many major real estate markets.
The opinions among the experts are split between severe and modest declines in real estate prices. However, as mentioned above, sellers might not sell at all instead of taking a discount. The market is in a difficult place with both the majority of buyers and sellers reluctant to move forward or look for new deals. Finally, the National Association of Realtors anticipates a strong rebound once the pandemic ends with little lasting effects on prices. In the event that this occurs, continued low-interest rates will also help to drive the real estate rebound.
Contact Our DC Law Office for More Information
For more than 20 years, Antonoplos & Associates has practiced commercial real estate, residential real estate, and real estate disputes and litigation matters. Furthermore, we represent clients throughout DC, Maryland, and Virginia
For more information on real estate prices during Covid-19, contact us at 202-803-5676. You can also directly schedule a consultation with one of our skilled attorneys.