When COVID-19 cases are increasing day by day, the public is putting in the best effort to prevent getting affected. Meanwhile, businesses around the world faced massive disruption; some might have streamlined the operations, but many are still struggling to on track. Real estate is one of the businesses that don’t stop. As construction is restricted for some time, realtors might see a decline in property sales; however, rental properties are still making them income. Thus, the situation is bad for many and worst for some. But what would be the future then? To get an idea of what can be done further, let’s read what real estate professionals have in their future plans.
1) Technology is the key to recovery
Connie from DIYoffer –In the face of the pandemic, the real estate sector is expected to experience a sharp decline through the spring and a significant uptick in the summer. However, due to the many unpredictable variables, there is a possibility of another decline in the fall if a second wave of the COVID-19 remerges. The most optimistic prediction is that markets might return to a form of normalcy starting in the spring of 2021.
I believe technology will be one of the strongest pathways toward recovery. On the residential front, players would need to recalibrate the home-buying and selling process by introducing robust digital solutions to make it easier for buyers to view homes, apply for a mortgage, process paperwork such as purchase contracts and close the deal, digitally.
Commercial real estate would also benefit from technology such as virtual reality, for example, to improve tenant engagement and encourage continued occupancy and, more importantly, to engage shoppers who are increasingly opting for a digital shopping experience.
2) Come out of COVID-19, being seen as an authority
James McGrath from NYC real estate brokerages –All real estate business owners need to be well-versed in how COVID-19 is affecting their local real estate market. Buyers and sellers want answers, and the fluff that sometimes passes won’t cut it anymore. Every owner should be able to run a client through what’s going on in terms of transaction volumes, prices, and the buying process itself.
For example, in Manhattan right now, there are about 5,000 properties on the market. In May, that’s usually more like 7,500, so buyers have fewer choices. In-person showings are currently prohibited, but once they’re allowed again, there’s a real chance a bunch of buyers end up focusing on the same properties and bidding wars break out. Would I count on it? No, there are a lot of negatives in the market too, but it’s a data point that should be shared and discussion that should be had with buyers.
You want to come out of COVID-19 being seen as an authority by both your current clients and future clients. That’s why I wrote this blog post. When an existing client asks what’s going on in the market, I tell them the main points and then follow up with that link for all the details. We’ve also been lucky enough to rank on Google for some COVID-19 related topics to get in front of potential new clients. If you have any questions about this or would like me to clarify anything, please just let me know.
3) It depends!
Mike Qiu from Good As Sold Home Buyers– How residential real estate recovers will depend largely on location and what type of industry a city or metro area is dominated by. In areas with jobs that either were not lost, or jobs that will return quickly, real estate should not take a hit at all. My metro area of Seattle, for example, even though new listings and sold listings have understandably been down by a lot compared to last year, pending sales have seen proportionally a smaller decrease. In fact, data from the NWMLS shows that pending sales for the first 2 weeks of May have all but caught up to 2019 (From a decrease of 1000 Pending listings at the beginning of April, to only 140 less than 2019 for the second week of May). This means the demand is still high, and we will see Sold listings began to catch up to 2019 numbers.
4) Better days are coming
Calvin Yang from Climate Youths Canada– My family is in the real estate industry across several countries. What I can tell you is expect a wave of green real estate developers developing sustainable buildings across the country. I think the COVID-19 epidemic is a good time for the world to reflect on our current economic situation and embark upon the path of integrating our economy with various green and sustainability. In places like NYC and across the EU, sustainability and carbon neutrality laws that were put into place before the epidemic will continue to be enforced, and the real estate business will see this as a good opportunity to change their business models.
5) Stand out: surpass, outshine!
Chantay Bridges From real estate professionals world enterprise mktg–If everyone goes back to usual, you must be different. Show the world that you take their safety and welfare seriously. While they are allowing the entire football team into their open house, you have set guidelines. You provide masks, gloves, and adhere to social distancing. You even have a hand sanitizer near the front door. You are not just doing your job but going above and beyond. You are doing what some others won’t. If your clients feel better going it alone, then you allow them to view while the others wait until you are done with that client. You are taking one for the team, doing all you know to do, and then some.
IT’S A NEW DAY!
Yesterday is over and today is a new day! Today you have sellers willing to negotiate who may would have closed the door in your face before. Today we have lenders lending with less restrictions. Today we have low interest rates. These trends and more will cause the real estate market to bounce back and eventually recover. Despite COVID, real estate will continue to move and gain ground. Whether it’s a seller or buyers market, someone is purchasing. As the crisis comes to a halt, people will feel more comfortable and begin conducting regular business, which includes the activities of buying and selling real estate.
YES, IT’S YOUR TIME!
Many are feeling a lot of uneasiness about entering the real estate market. We have more questions than we ever have had before. For most buyers, they are uncertain if now is still a good time to buy? It is and always will be. A good time to buy is when it’s the right time for you, and that’s different for each and every family. For one who has been saving, preparing, and have gotten pre-qualified, it’s a go. For someone who only has a little extra cash due to a stimulus check, it may not be quite the right time for you. You are in process, keep it up.
STATS (Found this online, see below)
Stats show the Corona Virus has lowered prices by about $380 to $560 each week in the So Cal and the Bay Area, respectively. The Central Valley has seen a minimal impact on housing prices.
Prices to May 2nd in the Bay Area are down 4%. Realtors say 82% to 89% of buyers are expecting lower prices. However, those attitudes are moderating. Fewer sellers in May so far are lowering their prices to get their home sold.
Home sales are definitely on a strong downward trend right up to last week, as this chart from CAR shows. The pace of decline is slowing. The good news is that pending sales are up to 625 per day, which is higher than most expect at this point in the recovery.
Home showings dropped big time during the Corona Virus shutdown period, but we can see showings are coming back strongly.
“The most recent stats about loan applications shows California mortgage applications are coming back very strong the last week.”
“Jordan went on to draw comparisons to the 2008 recession, but the old data relates poorly since the economy, optimism, inflation, and interest rates were much different.”
“The bottom line is that there has been a record level of optimism among consumers, and it doesn’t look like the coronavirus can crush the spirit of Californians. They will be back buying homes across the cities and states. “
Some brilliant business strategies can be produced with the help of opinions shared above. These are helpful not only in tackling the current real estate business issues but also prepare for the future. Yes, the industry is expecting a boom once things go calm; however, not all predictions become a reality, thus, it is better to be prepared to tackle multiple challenges coming your way. This way, you can future-proof your real estate business and walk a few steps ahead of your competitors.