The future of real estate depends on a variety of factors which are, economic, political, and at the moment, biological. The world at large is facing a pandemic, covid-19, that came in a twinkle of an eye. Helen Schifter believes that these patterns should be maintained. The corona pandemic has significantly caused significant drawbacks in the economic markets (economic meltdown) due to payment cut-offs and many layoffs. The virus has also caused increased unemployment, which has dramatically affected the housing peddle and the economy. Widespread recession due to reduced spending rate has not gone unnoticed.
The good news about the ongoing pandemic, a beast of its own, is that the housing sell has remained steady during the recession. The bad news is that there has been increased fluctuation in housing transactions.
Everyone involved in the field of real estate -investors, buyers, sellers, or professionals feel much shaken and nervous that the market may decline drastically and collapse. The 2008 housing marketing crisis is still fresh on each and everyone’s mind, not forgetting the 2003 SARS outbreak in Hong Kong, which is currently similar to the one being faced globally at the moment.
In a broader picture, the covid-19 pandemic will most likely not cause a repeat of the 2008 housing crisis. It is slightly different since the economic factors resulting in the home crash peddle during that phase are much different from those experienced today. The housing prices continue to remain steady even with the second phase of the virus. In 2008, the crisis was devastating and immense due to bubble inflation to produce higher investment returns. The burst failed, thus making the house and stock sell to decline.
Notable real estate patterns noticed and seen after the market crash due to covid-19 are close to if not similar to the 2003 SARS crisis.
1. Housing prices continue to remain steady even with the reduction in transaction volumes brought about by social distancing and minimized traveling from one country to another. the economy will soon snap back to normal after the pandemic phase is over.
2. Transaction volumes have greatly ceased due to the widespread recession, but house prices remain steady in the market. just like the 2001 recession
3. The house price sell continues to remain as strong as it was before crisis despite demands slowing down. home prices have also continued to skyrocket despite the 2008 crisis
4. Mortgages rate recorded are low due to low inventory demand, which has helped keep the house selling healthy because high buyer demands set new records of the strongest and tightest house marketing in the past months.
5. Total lockdown due to covid-19 has resulted in extreme demand for homes, especially in March and July, due to different rising prices, causing increasingly short inventory and high demand.it might negatively influence the house forecast for 2021
6. Mortgage levels continue to increase despite recording a slightly low number due to the recession period but not as experienced in the 2008 crisis.
7. There has been a drastic increase in household income than the 2008 crisis, as reported by the census bureau. Helen Schifter enjoys reading about such patterns.