The Effects of Covid 19 on the Real Estate Industry
As coronavirus or Covid 19 spreads, people are becoming more cautious. While the coronavirus has widespread effects globally, the economy also faces changes, according to Dallas news. The real estate market is coping with a mixed bag of positive and negative impacts of the outbreak. Overall, real estate remains a trusted long-term investment option when stock prices are falling, and the return on bonds is at an all-time low. Here are some ways the coronavirus outbreak could affect the real estate market moving forward.
Interest Rates
The Federal Open Market Committee issued an emergency interest rate reduction on March 3 to bolster the economy from the coronavirus’s effects. Since regular interest rates have dropped to only 1-1.25 percent, buyers who were unsure at the time of purchase could see that this is a wonderful time to secure interest on their mortgage. Lower interest rates can also help buyers afford a more expensive home or take advantage of better affordability as long as interest rates are low.
Showings and Open Houses
Real estate agents may see fewer buyers interested in attending open houses while the coronavirus outbreak is ineffective. Conversely, brokers may consider offering more open houses on the Internet and may need some time to try the latest virtual tour technology to present their offers without exposing themselves and buyers to the risk of contagion. In case you can’t show a house and find a motivated seller, the last resort is to ask the sellers to let the potential buyer in. In the event of a purchase, the seller may receive a gift certificate or a small discount to help the show.
Inventory
Inventory could become tighter as listings are delayed, and buyers and sellers become wary of making contact with strangers. Experts suggest that in the short term, home sales will be chopped by around 10 percent, compared to what would have been the case, due to the spread of coronavirus. A survey found that 11 percent of realtors see a reduction in buyer traffic, and 7 percent are reporting lower seller traffic when asked about the coronavirus’s impact on their market.…