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By Jennifer Bell
COVID-19 has changed the world forever. Every single person has been impacted one way or another from the virus; whether that be by losing a loved one, losing a job, or simply having to spend months at home quarantining. With that being said, every kind of business has also been drastically impacted. While some businesses were forced to close down, others were forced to become completely remote. One particular industry that has been significantly impacted by the COVID-19 virus is the real estate industry.
Prior to the virus outbreak, everything having to do with real estate was done face-to-face. Similarly, real estate is an industry that is almost entirely based on the state of the economy; and in 2020 the economy has been something worth paying attention to. Therefore, it’s important to look at and understand how real estate has been impacted by the global pandemic. This post will detail some of the most significant ways that COVID-19 has affected the real estate industry.
The Impact That the Global Pandemic Has Had on the Housing Market
As the future of the COVID-19 virus is uncertain, it’s worth knowing how it is changing the real estate market, as this is something that almost everyone is/will be impacted by at some point in the near future. Here are the top 3 ways that the housing market has been changed due to COVID-19.
Drastic Safety Measures
Like most businesses, the real estate market now has to adhere to much stricter rules regulations to ensure the safety of not only employees but also clients. In addition to meeting with clients that want to sell their home, realtors also meet with potential buyers; thus realtors are subject to a lot of human interaction. Realtors have been forced to go above and beyond when it comes to sanitation and safety measures; some of the ways they have been doing this include:
- Wearing a face mask whenever they are face-to-face with a client; whether that be in an office or when showing a home
- Using hand sanitizer frequently
- Taking potential buyers temperatures before allowing them to walk through an open house
- Putting a limit on to how many people are allowed in an open house at one time
- Making sure that clients are following social distancing guidelines
- Asking people attending an open house to wear shoe coverings
- Providing custom face coverings and sanitizers to clients
These safety measures are necessary in order for realtors to continue showing and selling homes.
Increased Competition Among Buyers
In the U.S. right now, the seller’s market has created greater competition among buyers. Buyers are trying extra hard, given the current state of the world/economy, to not go over their budgets. Quality homes that are reasonably priced and are in a good location are more desirable than ever. Because of the limited supply of homes that seem to be the ideal house, there is significantly more competition among buyers.
There is also increased competition among buyers because now, more than ever before, people want their ideal home as they are going to be spending a lot of time in it. Because the COVID-19 virus is forcing people to work from home and limit their social outings, buyers want to purchase a home that meets their exact needs as they will be spending more time at home than ever before.
Making the Switch to Digital
As briefly stated above, the real estate industry is one of the many of industries that have had to make the switch to going digital. Though the entire process of buying or selling a home is not done digitally, certain steps of the process are done this way in order to limit in-person contact as much as possible. For example, a real estate appraiser in New Jersey pointed out that home appraisals now can be done virtually instead of in-person. Rather than having a home appraiser come to one’s home to perform an appraisal, appraisal companies now offer the option to conduct appraisals via video conferencing software.
Though most people do not want to purchase a home digitally, meaning most people want to see what they are buying before they put money down, other parts of the home buying process can be carried out online.
The Future of Real Estate
As COVID-19 proves itself to be a force to be reckoned with, it’s likely that the real estate market will continue to operate this way for the foreseeable future. It’s probable that intense sanitation measures will remain prevalent and that the buying and selling process is going to look, feel, and operate differently than before. If you are looking to buy or sell a home in the near future, keep this post in mind so that you know what to expect during the COVID-19 pandemic.
About the Author
Jennifer Bell is a freelance writer, blogger, dog-enthusiast, and avid beachgoer operating out of Southern New Jersey.
