COVID19: The Impact on Real Estate
Summer is peak sales season for houses. If you were planning to sell your home and are now concerned about what that means during a pandemic, you aren’t alone.
According to article on Curbed, traffic on Zillow and Redfin dropped by almost 40 percent in the immediate aftermath of the pandemic. Given the dramatic increase in unemployment and general economic uncertainty, that’s not surprising.
A literature review by Zillow looked at patterns around real estate sales during pandemics. It showed “economic activity fell sharply during the epidemic …” but recover after the pandemic was swift. This was true in the case of 1918 Flu Outbreak and the SARS epidemic of 2003.
The question now is when the COVID19 threat will end and when the economy will be back to pre-COVID levels.
2020 Economic Outlook
“The Fed is projecting a particularly sharp economic hit in 2020, with officials expecting output to contract by 6.5 percent at the end of this year compared to the final quarter of 2019, before rebounding by 5 percent in 2021,” according to the New York Times.
Although we can’t be sure how the economic situation will play out in real estate, it is a safe bet that 2020 could be a rough year for you to get maximum return on your home sale. Even in places with high real estate values like the Washington DC area, this year could be a challenge for sellers.
Depending on your situation, you may want to adjust your expectations about the price you’ll get or your time frame for selling your home. If you need to sell your home quickly because of the economic circumstances brought on by the pandemic, you have several options. You can sell your home by owner, sell to a local cash buyer, or enlist the help of a local real estate agent.
Staying Safe While You Sell
Often it is keeping your house ready to show at a moment’s notice that is the tricky part of selling your home. Now that COVID19 is part of the equation, you’ll need a whole new set of standards.
The idea of bringing strangers into your home during a pandemic can be overwhelming, but you can take steps to ensure you and your potential buyers stay safe.
- Clean your home thoroughly before it is viewed.
- Offer masks, hand sanitizer, and wipes to your guests. Consider setting up a station for these items just inside the door.
- After a showing, wipe down doorknobs and other frequently-touched surfaces with a disinfectant.
- If you are particularly worried about infection, ask realtors to limit showings to healthy or masked buyers. You can even post a sign if someone in your home is at high risk.
ZVestors ZVestors buys property in the DC Metro Area, Maryland, and Virginia. Most sales can close in a matter of days after a customer accepts an offer. ZVestors pays cash for homes and eliminates the need for upfront expenses, fees, and commissions. To learn more about ZVestors, visit them online at www.zvestors.net. You can also call 703-259-0570 and talk to a team member about buying your home.
References
https://www.curbed.com/2020/3/6/21163523/coronavirus-economic-impact-housing-market
https://www.zillow.com/research/pandemic-literature-review-26643/