Coronavirus Impact On Real Estate

Wanted to provide an update during this time as I'm sure you're wondering what is going on with the real estate market and when is the right time to buy or rent.

For people that are considering buying in the near future or have an upcoming lease that is ending, you may be wondering how is the coronavirus impacting your ability to find your next home.

In terms of some of the macro effects I have been seeing in the real estate market.

1.  Unlike the stock market, real estate is an asset class that has continued to remain stable and hold its value, especially in the coastal markets

How and why is this the case?

1. The industries most impacted are hospitality, restaurants, and travel. These industries have a larger amount of employees that plan on continuing to rent for the next few years compared to those in higher paying jobs that are continuing to buy in the coastal markets.

1. Demand of eligible buyers continues. What I've seen is any places that are a good deal are continuing to move pretty quickly

2. Interest rates are tumbling

• This is causing many people to refinance to the lowest rates we have seen in years, which is also a great buying opportunity. A lower interest rate has the ability to save hundreds of dollars per month.
  

3. Virtual tours demand is increasing

• With the quarantine in full effect, it is becoming even more common to see houses and apartments both offering virtual tours and walkthroughs of the respective real estate.
• This is a great way to get a feel for an apartment that normal static pictures do not provide.
  

4. More inventory later in the summer

1. I am expecting more inventory to go for sale later in the year compared to the usual yearly cycle as a result of COVID-19. Anyone that is not pressed to sell their house now is better off waiting until we are beyond COVID-19 so they can hold normal open houses again

So what happens if you find a place you are interested in?

• Instead of open houses, more people are doing private showings to limit exposure and avoid large groups. This provides a more intimate experience while also being safer for all parties involved.
• I am offering free virtual tours to all of my clients. Not only is this great in the current world we live in, but can be great to refer back to a few top contenders you are considering.