With all the other dire impacts of this horrible pandemic, it is challenging to consider the post-pandemic impacts on the broader housing market. The mindset and combination of fears, concerns, needs, priorities, perceptions, combined with the stresses related to the virus itself, caused many people to reconsider their real estate needs and desires, now (in the present) and into the future. In my 15+ years as a licensed real estate salesperson in New York State, I have observed and witnessed a variety of market types, but those were predominantly created by economic considerations, factors, perceptions, etc., while. this is much more complicated and, in many cases, personal. It will probably not affect housing, equally, in all regions, price ranges, etc. With that in mind, this article will briefly attempt to consider, examine, review, and discuss 5 factors, created by this health crisis, that can have the most impact.
1. Geographic priorities: Many noticed that the first thing was the influx of people, who moved, from the cities, to the outside, the most densely populated areas. For example, in New York City, rental prices are the lowest, they have been, in more than a decade, and there is the highest occupancy rate, in a long time. This has created a sellers market, in the suburbs, because 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 looking for changes, in terms of style and features, to the homes they are looking for. Many are looking for larger properties, so families can adapt, if necessary, in the future, and more rooms, to dedicate the trend, towards home / office considerations, which we have experienced, and many believe we will continue to see.
3. Record: Low Mortgage Interest Rates: We have experienced a long period of historically low mortgage interest rates. When rates are low, we often see prices soaring, because the lower the costs of borrowing, the more home you can afford for your monthly dollars. This creates higher house prices, at least for those houses, which serve, what people perceive, as their present and future needs and priorities.
Four. Fears / preparations / adaptable to contingencies: Due to the combination of fears and the desire to to adapt, in the event of contingencies that may occur in the future, we must prepare for a changing and evolving real estate market.
5. Will this turn into a longer-term trend or, limited to the period of the pandemic: How long will these changes continue? Will prices continue to rise and more people will leave the cities for the suburbs? Historically, real estate markets have been cyclical and price sensitive. Will the price increase eventually reach a resistance level? Will we be better prepared for future crises?
We are witnessing an active, changing real estate market, which has been a prolonged Sellers Market. How long will this continue and what could the future hold?