Coronavirus Impact On The US Real Estate Market

The dreaded pandemic is here in the name of COVID-19. The entire world is reeling under its effects. Right now, the nation is focused on measures to control the pandemic. The economy has already taken a beating. 3-week long lockdown in many nations and yet we are uncertain of when the virus will be gone completely. What we all shred to think is the economic destruction and disaster it will leave along its path. The coronavirus impact on the US real estate will be felt and the amount depends on how fast we will get rid of it.

What will be the coronavirus impact on the US real estate?

While many trade pundits are skeptical about a downslide, we have reasons to believe that the coronavirus impact on the US real estate sector will linger on for months to come.

Sellers are withdrawing from the market-       

The sellers are withdrawing their homes from the real estate market now because there are no takers. Exactly how long will it take for this pandemic to completely subside is to be seen. The sooner this pandemic stops, the chances of recovery are fast. But the relapse cases in China are a grim reminder that this virus is here to stay longer. In that case, the economy will take years to revive. Even though the government is doling out stimulus package, people will spend only on essential items.

Reduced Investments-

Layoffs, unemployment, reduction in salary, reduced spending- is going to be the new norm for a few months now. Every industry is hit hard by the pandemic. The hospitality industry, food, sports, transportation, and many others are all grappling with the complete halt of services and thus reduced businesses. Many companies have already laid-off employees with no certainty of the future. As of now, a record 3.3 million have filed claims for unemployment benefits in the USA. Many have reported a cut in their salaries.

When spending becomes less, the investments in real estate are too less to come by. People who are not sure about their jobs will not take the risk to invest in the real estate market even if the rates are low. While others with a strong financial background may take the wise decision of investing in real estate taking advantage of the decreased rates.

Commercial real estate will be hit-

Hotels and cafes are badly hit due to the coronavirus pandemic. Places in the coastal areas of New York, California, and Florida that thrive on tourist income will be badly hit and the sales of commercial properties here may take a beating. The overall situation is largely dependent on where the coronavirus has hit badly. Some pockets of New York, New Jersey, and California may suffer more due to the effect of coronavirus. In other areas, although there might not be a drastic impact, the real estate deals would be slow and far less.

For people who have lost their jobs, paying back the dues to the lender will be challenging. They may have to replan their expenses to pay the mortgage or talk to their lenders.

Conclusion          

While we are not sure about the coronavirus impact on the US real estate market, we would like to be optimistic. It is a good time for real estate investors. For people facing a financial crunch, it is a positive lesson to save money so that you can pay your mortgage even if you have lost the job. Let us hope for the best.

In these challenging times, if anyone wants to sell their homes fast for cash in the US, we help. We buy houses in any situation, any condition fast for cash. You need not spend on repairs. You need not pay fees or commissions. We are the reliable home investors who buy your homes for cash. We deposit the money in your account within 7-10 days of closing the deal. With us, you can be assured of quick and hassle-free service.

Matt Williams is the founder and CEO of Add USA Story - A platform for global startup, looking to find happiness in the world of startups, investments, health, technology, business and more.

2 Comments

  1. thanks for sharing coronavirus information in market in US also in india real state market goes down

  2. Thanks for sharing this fantastic information. with this pandemic effect lot of people they loss their jobs businesses shut downed. not only usa the entire world is suffering with covid-19 it will show some impact on real estate. we CNP Construction’s is one of the experienced Real Estate company which offer a wide range of related services with all the genuine and confidence of the customer. Our aim is to deliver well experienced and expertized real estate services by adopting new technologies and applying new work concepts.
    we started our company in 2017 now we also facing this same issue.

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