Wednesday, June 2, 2021

How The Real Estate Market Was Changed During The COVID-19 Pandemic


I am not sure if you know how the real estate market has been impacted by the recent COVID 19 pandemic but I wanted to share with your information about it as an ultimate resort, governments worldwide respond by imposing lockdown as well as stay-at-home orders to prevent a collapse of healthcare systems. In the following months, vacant office buildings, home offices, empty shopping malls, and promenades closed restaurants, silent bars as well as clubs become symbols of social distancing and the limitation of interactions among people. Although these restrictions are effective in controlling the spread of the disease, shutdowns go in hand with a global economic crisis despite a wide range of economic support measures. Alike many industries, real estate markets, including residential and commercial real estate, as well as mortgage markets, are confronted with unprecedented challenges.

The number of commercial and residential property sales drops, people, abandon their apartments in metropolitan areas, and households occur payment difficulties in redeeming their mortgages among others. Hence, economists and industry experts have an interest in better understanding the pandemic’s effect on real estate as well as mortgage markets and using these insights to project the economic impact of further waves of COVID-19 in the short and long run. Especially at the end of 2020, these conclusions are valuable as many different countries, mainly in Europe, start to re-impose restrictions in order to flatten the second wave of infections.

But then things changed as I was reading on Freddie Mac the COVID-19 pandemic has increased interest in homeowner mobility. There has been a growing trend of moving away from urban areas as housing preferences have shifted towards larger homes that are more conducive to remote work and virtual learning. As a result, more and more people are moving to suburbs and rural towns. One would assume that this trend was the product of pandemics, but our research shows that it was not. The movement away from urban areas began well before any of us heard of the phrase ‘COVID-19.’ Moreover, that movement is to rural areas within metro areas, suggesting that while people may be leaving cities, they are not necessarily moving far from the advantages that cities offer. I also have seen personally that houses sold within a week in Maryland and Maine so right now it is a seller’s market. I also heard a guy in Maine trying to buy a house put a higher offer on the home by $30,000 and still could not get the place as so many wanted it. Right now is an interesting time for the housing market from buyers to sellers so when you decide what type of home you want and where make sure to do your research and find out what to see what the rates are and what you can afford using

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