5 Expert Predictions for the Post-Pandemic Real Estate Industry
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.
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.
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:
Carol WeberPosted at 16:31h, 24 April
Please send information.
AmirPosted at 05:48h, 20 May
What kind of information do you require?
Daniel R. MaroisPosted 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.
AmirPosted 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!
AmirPosted at 12:55h, 13 July
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.