With, all the other, awful impacts, from this horrific pandemic, it is challenging, to consider, the post – pandemic, impacts, on the overall real estate market. The mind – set, and, combination of fears, concerns, needs, priorities, perceptions, combined with the stresses, related to the virus, itself, made many people, reconsider their real estate needs, and desires, now (at – present), and into the future. In my, over, 15 years, as a Licensed Real Estate Salesperson, in the State of New York, I have observed, and witnessed, a variety of market – types, but, those, were predominantly, created, by economic considerations, factors, perceptions, etc, while. this one, is far more involved, and, in many cases, personal. It will, probably, not affect housing, equally, across, regions, price – ranges, etc. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 factors, created by this health crisis, which may have the largest impact.
1. Geographic priorities: The first thing, many noticed, was, an influx of people, relocating, from the cities, to outside, the most, densely populated areas. For example, in New York City, rent prices, are the lowest, they have been, in over a decade, and there is the highest occupancy rate, in a long – time. This has created a Sellers Market, in the suburbs, because so many are trying to buy, at the same – time. It has been a factor, in rising prices, increased demand, and population changes.
2. Home – style changes: Buyers are seeking changes, in terms of the style, and characteristics, of the houses, they seek. Many are looking for larger properties, so families can adapt, if necessary, in the future, and more rooms, to dedicate the tendency, towards, home/ office considerations, we have experienced, and many believe, we will continue, to see.
3. Record – low mortgage interest rates: We have experienced, a long – period, of historic – low, mortgage interest rates. When, rates are low, we, often, observe rising prices, because, the lower the costs, to borrow, the more home, one might afford, for his monthly dollars. This creates, higher house prices, at least, for those homes, who serve, what people, perceive, as their present, and future needs, and priorities.
4. Fears/ preparations/ adaptable to contingencies: Because of the combination of fears, and a desire to adapt, to contingencies, which may occur, in the future, we must prepare, for a changing, evolving, real estate market.
5. Will this become a longer – term tendency, or, limited to the pandemic period: How long might these changes, continue, will prices keep rising, and will more people, abandon the cities, for the suburbs? Historically, real estate markets, have been, cyclical, and price – sensitive. Will the rising prices, eventually, reach a resistance – level? Will we be better prepared, for future crises?
We are witnessing a changing, active, real estate market, which, has been, a prolonged, Sellers Market. How long will this continue, and, what might the future, bring?