5 Expert Predictions for the Post-Pandemic Real Estate Industry

5 Expert Predictions for the Post-Pandemic Real Estate Industry

18 Apr 2020 Posted at 11:00h by
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Real estate experts, just like those from other businesses, are trying their best to figure out the current situation and predict what is yet to come.

The pandemic created a dynamic that has baffled everyone in virtually all aspects of the real estate industry. Some prefer to remain cautious and avoid any harsh measures. Others, however, maintain that realtors should act swiftly or risk putting their business in irreversible conditions. 

Here are top five predictions by some of the big names in the real estate industry:

1. Joanne Kaufman, The New York Times

Joanne sees an accelerating drop in home-buying due to the limitations imposed on activities in public. She asserts that more and more buyers will stay home to avoid any further financial strains. 

Also, she forecasts a trend in out-of-town housing. With cities and their downtowns hit hard by the pandemic, more folks will want to buy a place outside of the crowded areas. 

2. Diana Olick, CNBC

She speculates a 35% decrease in property values and even more in areas with more adverse effects from the pandemic, like NYC and California. 

The driving force behind the decline in values, in her opinion, is the loss of consumer confidence, given that their savings have been challenged by lockdowns and quarantines. 

3. Brad Hunter, RCLCO

Brad believes the impact on the real estate industry will be regional. Some areas will be hit more than others. This is due to the dispersed effects of the Covid-19 and its impact on businesses. 

He emphasizes that there are short-term and long-term effects, the latter of which will be less detrimental. 

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4. Jeff Andrews, CURBED

He focuses more on the housing market and predicts that mortgage rates will be lower and few people will be buying and selling houses. Unlike the pre-pandemic era when demands were growing thanks to low unemployment and better income, web traffic has dropped up to 40% during the pandemic, which contributes to staggeringly lower demand. 

5. Javier Vivas from Realtor.com

Javier draws a comparison between this pandemic and the one in 2009, the SARS outbreak. He argues that despite the more critical health situation now, the global economy, especially in America, is in a much better state. So, following a short drop in demand and property sales, the market will soon bounce back to high numbers.

Bottom Line

A quick look at the comon predictions highlights the fact that there will inevitably be a loss of value and sales in the real estate market, at least in the short term. However, most folks are optimistic that in the long run, the market will bounce back and make up for the setbacks experienced during the Covid-19 pandemic of 2020.

For more information about how to more your business online, please check out our article below:

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Disclaimer

The opinions or information expressed in this article are those of the author and do not necessarily reflect the official views, policy, or position of Realtyna. The information on Realtyna’s Website is general, for informational purposes only, and is not to be relied upon or interpreted as real estate, legal, accounting, or other professional advice or a substitute. Please discuss anything related to the certification process, professional advice or legal procedures with your MLS providers.

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6 Comments
  • Carol Weber
    Posted at 16:31h, 24 April

    Please send information.

    • Amir
      Posted at 05:48h, 20 May

      Hey Carol
      What kind of information do you require?

  • Daniel R. Marois
    Posted at 10:20h, 19 May

    May I reprint this list of predictions in Maine REALTOR and New Hampshire REALTOR magazines for which I serve as editor. I will, of course, give attribution as needed.

    • Amir
      Posted at 05:51h, 20 May

      Hey Daniel. Thank you for interest in this article. I will get in touch with you soon.

  • Thomas J. Nelson, REALTOR*
    Posted at 09:35h, 12 July

    I’m sure this will be a regional experience. Based on San Diego, CA’s market, I can share most of these predictions are unfounded, non-factual and dead wrong. Check out the many posts of Dr. Lawrence Yun, NAR’s Chief Economist. Talk to actual working REALTORS*. Demand is up, prices are up, Rates are historically low and inventory is down. It’s the perfect storm for our robust market. It’s a pandemic induced recession, yet I have buyers ranging from $300,ooo – $4,000,000 and three of my high-end buyers ($1M-$4M) are moving here from out of state. Our San Diego economy is strong with 7 major industries driving us, including the power of the military and 1,000,000 veterans and their families living here and contributing to our economy. I’m busier now during the pandemic as a REALTOR* than I’ve been since 2017! So, while I agree not all areas of CA nor the USA are created equal real estate market-wise, from a “in the trenches” of San Diego’s market perspective: we’re booming right now. You must realize, real estate is local, national news and non-licensed talking heads are not serving your truth. Talk to your local REALTOR* or Mortgage Broker for the real scoop-facts not fears make informed decisions. It’s A Good Life!

    • Amir
      Posted at 12:55h, 13 July

      Hello Thomas.

      Thanks for sharing your feedback.
      The remarks in this article on predictions are proposed by the real estate experts with years of experience working and investigating the industry. I’ve linked their names above with the references. You can click on their names and get a better grasp of their remarks. You will notice that they are not fear mongering but simply pointing out to a few bumps on the road and almost all of them are optimistic about the future of the market.