How Corona Virus is Impacting on Real Estate Business
We have undoubtedly heard about the disease going around corona virus which is spreading across the country like a hot air. According to center of disease control, the virus has been identified as the cause of an outbreak of respiratory illness which was detected first in Wuhan, china,Till now the virus has been confirmed over 9500 across to the world and being directly tied to death is more than 2000 people. Depending on who we are listening to, the result has become real and blown out of proportion.
Now here the question arises why we are discussing about virus here or what is the need of even asking this question. No matter which side we are on , there are real some serious discussions going around on amongst real estate industry about what effect of virus may have for industry. The real estate industry has a very strong opinion when it comes to drive money from business.
The problem occurs how the virus effecting on stock market or on sales. Now you will again raise question how come virus impacting on market. When the market goes down , people tend to become more conservative and reluctant to invest their money . This could certainly transform into fewer home purchases , people prefer to staying put instead of moving up. Cash buyers do not want to take risk to sell their stock at potential loss to cover a close of escrow and some customer also cancelling their transaction and forfeiting an earnest money as a result.
Some weaker financial market do cause less stability in the real estate market, but some market will look into the positive side and discuss about the opportunity to investor with money to scoop up the properties which may not be much appreciated as quickly as market goes stronger. And also some “would be” may finally pull the trigger on purchasing an investment property.
Impact on Rental Market:
The time when market financial downturn is the presence of investment properties used solely as a short term rental .
Impact on how agent represents clients ,For the long term rental or the short term rental market for the purchase market people come year after year and eventually decide to buy their own place instead of renting. But now due to COVID 19 people are skeptical to buy their house even it’s available at reasonably and for investor it’s particularly the best time for investing as they know how the market are dripping down slowly.
Now this entire scenario brings to the next question and one that which has been floating around in social media posts by agents “ Has fear of the corona virus changed how agents are representing your clients? ” .
People are being more serious and more cautious in terms of spreading of this virus. Site visiting is slowing as many customer do not want to take a risk of going out and fall sick. There have been suggestions to put on mask entering to those open house. Handing hand sanitizers, gloves has become now the most essential necessities. Agents are now contemplate putting distance between themselves and their clients out of health concerns. Now situation brings up the larger questions here.