Covid-19 has had a significant impact on almost all sectors of the economy. Even the most developed countries, like the USA, feel the pinch, especially due to the uncertainty that this pandemic brings.
Among the most hit industries, the property market is one of them. Many things are changing, and you can say many things about this market. According to our findings, here is a brief guide of how the housing market is fairing within the pandemic.
Both people and businesses are leaning towards cost-saving options
Everyone is leaning towards saving rather than spending because people don’t know how long this pandemic will last. As a result, some businesses are opting to close their offices or even let go of some of their space to work from home.
On the other hand, people, due to loss of employment or job security, most people don’t want to spend most of their money. Therefore, we are seeing a decline in the number of homes that people want to buy.
Alteration in house prices in cities
In cities where the pandemic hit many individuals, proprietors are opting to lower their asking price, especially since demand is low. On the other hand, in a few developed countries, especially those whose economy is still intact, prices are going high.
Although this was the case before the pandemic struck, most developers have stopped construction because of the recent pandemics. Some of these projects delay because of the delay of issuance of permits. Others think that continuing with such projects puts the construction workers at the risk of contracting the virus.
To curb the recent problems that most individuals face during the pandemic, governments legislate banking institutions to reduce the interest rates for mortgages, especially. There are also tax relief efforts to ensure that citizens don’t have many financial burdens in the middle of the pandemic.
Owners are not listing properties anymore
People who want to sell their houses face a new challenge of protecting their clients from exposure to covid-19. Because of this, they don’t want to list their properties to avoid face-to-face meetings. Furthermore, nothing is as difficult as selling a home in the middle of a pandemic.
Most house owners understand that their tenants have a hard time coping. Therefore, some are offering lenient payment terms and extensions for their clients. Others are offering rent-free months within a certain period. For those looking for houses, there’s a chance that you can get one at a discount too.
A few of them also request businesses to submit their turnover sales figures to help them decide the amount of discount they should give to their tenants.
Most tenants and businesses alike are investing in online workspaces, e-commerce sites, and digital marketing. The move is to help reduce operational costs for things like office space, the amount paid for rent, and the number of employees needing to work in the office.
It could be a difficult time for the real estate industry. Nonetheless, we are also seeing businesses coping with the difficulties that the pandemic brings. And even though experts thought that this would be a tough time, most people are finding alternatives like doing business online.