How is COVID-19 Affecting the Real Estate Market?
As the coronavirus continues to batter economies around the world, real estate leaders are focused on the financial markets for insights.
There is no doubt that the virus will have short-term impact on the real estate market — New York City is already seeing the fallout.
Sellers there are now more reluctant to list their residences, due to falling prices and the risks of having strangers touring their homes as the virus continues to spreads; open houses are on a steep decline; and potential buyers are also postponing decisions, in part, due to the bounce-back of record-low mortgage rates.
In a recent survey, 16% of Realtors reported witnessing a drop in buyer interest related to the coronavirus and 25% of sellers are changing how they market their homes, going entirely online, according to the National Association of Realtors.
It's also likely that higher-priced markets will see more of an effect, as buyers are more influenced by moves in the stock market.
However, it's too soon to tell how this will impact real estate in the long-term. Real estate is not the stock market and many are already anticipating a strong rebound in markets in the second half of the year.