COVID-19 has changed the world in so many different ways. There are no crowds on the streets, the companies are closed, people are very cautious about social contacts and we can’t know for sure when the crisis will end. The airlines are not working, people are generally more careful about their money. It seems that the “invisible enemy” as people call it has managed to cancel all our plans for this year. The experts expect major changes concerning economics, including some that are not very optimistic saying that this is the end of the world we know and that we are about to see the way everything will function after this is over. But, what about the real estate market?
The expectations for market development
During February, the Miami real-estate market was on the rise for single-family homes and condos equally. People were happy to enjoy their new homes. However, COVID-19 changed every aspect of our lives, including the real-estate market. Even though it is not possible to know for sure what will happen, the experts are giving their assessments and explaining their reasons why they believe in that particular outcome. There are a few possible outcomes of this situation.
Some experts believe that the overall home sales could drop by 35%, which would mean that it would bring us back to the situation from 29 years ago. It could have serious drawbacks and the consequences that will be hard to deal with. The reason for this drop is increasing unemployment. More than 3 million Americans became unemployed lately due to this crisis. It is certainly not easy for anyone at this point. Everyone is struggling and focused only on basic needs.
People are canceling open house meet-ups due to the social distancing and overall prevention of the virus spread. The inability to come to see the home obviously reduces the interests of the potential buyers to come and actually buy the home. While the sellers are withdrawing their offers for sale, the sales agents are not able to organize encounters, while the potential buyers are scared for their incomes. The measures used to fight the virus are certainly decreasing the people’s confidence in their ability to pay the bills and the overall economic situation worldwide. However, the drop is not expected to last very long. Even though the rise is expected during the next year, this crisis will certainly impact the overall situation.
The home sales dropped significantly ever since the crisis started, but the prices stayed the same or got decreased slightly. One thing that everyone agrees on is that the market is paused and there are no significant activities at the moment. Also, there are various measures concerning mortgages and monthly payments to soften the fall during the crisis and to help the citizens overcome this difficult period. However, there is a concern that the mortgage industry will suffer for it. There is no way to know for sure, but the government will strive to do everything they can to overcome all the difficulties.
There is one interesting observation though – people don’t shake hands anymore making the situation develop in the direction we are not used so far. It looks like we started shying away from contact with other people and it certainly impacts the ways business is done. It leaves us wondering just how used are we to interacting this way and if the virus crisis will have a permanent impact on the way we communicate and cooperate.
Even though there are some gloomy predictions, thankfully there are also some more optimistic expectations as well. Since everyone is looking for ways that can help the economy recover after everything starts going normal, some experts believe that building family homes will be the perfect way of creating jobs and generating taxes, which will contribute significantly to the overall recovery.
The demand for houses will always be there, people will always need a place to live. Even though the situation may be a little bit challenging at first, there is certainly the light at the end of the tunnel. Working on building houses means work for accountants, lawyers, real estate agents, engineers, and architects. It will be the boost we all need. It may be slow at first, but there will certainly be many incentives for making progress.
In the meantime, some experts believe that COVID-19 will be the only disruption for a little while and that we will simply bounce back. There are still people with significant savings, businessmen, and investors who are simply waiting for the situation to settle down before going full-force into new endeavors. It is certainly something everyone hopes for.
Some people compare the virus crisis to the situation we had many times before with the hurricanes. After every hurricane, people are careful and cautious for a while and then start living the life they are used to. People are resilient, we are used to all kinds of hardships. We will survive this and probably even increase sales. What people realize in situations like this is that life is short. Why don’t you buy the home you’ve ever wanted? Some people dream about having a home next to the beach, but somehow always put up the dream for some other time.
Well, after the crisis is over, these people will want to make their dreams come true. If you are one of them, visit propertiesmiami and check out all the apartments listed. You will find a gorgeous home for you and your family for sure. The real estate market changes constantly and even though the crisis caused by COVID-19 is evident and serious, we shouldn’t be too worried. If history has ever thought us anything, it’s that no matter what kind of crisis strikes, we will be able to recover. In the end, the only thing that truly matters is our health, so we wish you to stay safe and protect your family and friends until everything goes back to normal again.