How Coronavirus Affects the Real Estate Market
With the coronavirus outbreak, 2020 has not started on a positive note for the whole word. The coronavirus, also known as Covid-19, has become a pandemic that is growing exponentially. The economic and political consequences are hard to predict, but they already are causing a significant concern, particularly within the real estate community. Real estate agents are worried about how Covid-19 will affect the real estate market and how long the effects will last. In general, people are concerned. Some are even panicked, which from a psychological point of view tends to make them less willing to make a risky decision such as homeselling or homebuying. Of course, this process is the core of the real estate market, the bread and butter of real estate agents. In this article, we will try to preview some possible effects of Covid-19 on the real estate market.
Homebuying and Homeselling Process in Today’s Real Estate Market
The coronavirus has affected all spheres of our life. Many people are practicing voluntary social distancing as was recommended by the Centers for Disease Control and Prevention. What does social distancing mean? Social distancing is a nonpharmaceutical infection control action that prevents the virus from spreading in the community and helps flatten the epidemic curve. Put it simply, maintaining the distance between people at least six feet and minimizing social contacts helps tremendously to contain the virus and not overwhelm our healthcare services.
What does it mean for real estate agents? We can expect less open houses and possibly a drop in activity from potential leads, especially seller prospects, in the nearest futures. Right now, the immediate concern for many real estate clients are health and safety. The uncertainty of the coronavirus development also fuels downward pressure on the market.
As real estate agents report less and less open houses, and even if they are taking place, people are less interactive. We advise offering clients virtual tours instead of regular ones.
As for homebuying, real estate market specialists predict that the dramatic decrease in interest rates may help some with demand. This may motivate some buyers in stronger financial positions to take advantage of the increased affordability conditions.
The real estate field is a sphere where most interactions happen face-to-face. Real estate agents will need to adapt and develop strategies. Virtual tours are one step toward healthy real estate practices during a coronavirus outbreak. Another healthy practice is having a robust real estate website through which leads can contact you. This will help agents maintain their promotional efforts and keep contact with potential clients.
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P.S For more on how to minimize the effects of the new coronavirus on your real estate business, stay tuned to our blog.