Real estate runs on loans so if the lending market is drying up that seems to be indicator of less available buyers, lower housing prices and lower demand in many markets.P.S. 

Can anyone please tell me if this is typical or if I should demand the rental app and background check or simply back out?

Long term housing is in high demand here in the Florida Keys, particularly in Key West.  

Maybe the condition is not that bad but because I have zero experience, the listings I see tend to demand a lot of work in my opinion. 

Maybe the condition is not that bad but because I have zero experience, the listings I see tend to demand a lot of work in my opinion. 

There is huge demand for that.

2- if it’s vacant, that is a bigger problem now than 3 months ago. 3- ultimately it depends on how desperate sellers are, and how much of a “deal” the buyer demands.

“As long as an area’s economy is adding jobs and seeing rising wages, there will be demand for ownership housing.”Essentially, as long as people are employed with companies doing well enough to offer wages, they’ll feel confident enough to make that 30-year commitment to a sizable mortgage debt.This confidence is bolstered further by low employment numbers—as people are reassured that even if they lose their current job, there’s a high probability that they’ll find another one in short orderhttps://www.homelight.com/blog...

layoffs, demand, etc. ?

If I was in your situation it would come down to the area it is in..if its desirable and has demand for rental I would go for it..I believe no matter how much the market drops during this crisis it will bounce back especially in hot areas that had 20-30 offers weeks ago.. are you willing to lose the deal to get a 5% discount when the property can potentially skyrocket after we are allowed to give high fives again