5 Post-Pandemic Factors Impacting Real Estate

With all the other dire impacts from this horrible pandemic, it is challenging to consider the post-pandemic impacts on the housing market as a whole. The mindset and mix of fears, concerns, needs, priorities, perceptions, combined with the stress related to the virus itself, caused many people to reconsider their real estate needs and desires, now (in-present), and into the future. . In my 15+ years as a licensed real estate salesperson in New York State, I have observed and witnessed a variety of market types, but those were efficiently created by economic considerations, factors, perceptions, etc, while. This one is much more complicated and, in many cases, personal. It probably won’t affect housing, equally, across regions, price ranges, etc. With that in mind, this article will briefly attempt to consider, examine, review, and discuss 5 factors, created by this health crisis, that can have the greatest impact.

1. Geographic priorities: The first thing, many noted, was an influx of people, relocating from the cities out to the more densely populated areas. For example, in New York City, rental prices are the lowest in over a decade and there is the highest occupancy rate in a long time. This has created a Sellers’ Market, in the suburbs, because so many are trying to buy at the same time. It has been a factor in rising prices, increased demand, and changes in population.

2. Home – style changes: Buyers are looking for changes in the style and features of the homes they are looking for. Many are looking at larger properties, so that families can accommodate if necessary, in the future, and more rooms, to kick off the trend, towards home/office considerations, which we have experienced and many believe we will continue to see.

3. Record low mortgage interest rates: We have experienced a long period of historically low mortgage interest rates. When rates are low, we often see prices rise because the lower the costs to borrow, the more house dollars a month can pay for. This creates higher house prices, at least for those houses that serve what people perceive as their present and future needs and priorities.

4. Fears / preparations / adaptable to contingencies: Due to the combination of fears and a desire to fit, to contingencies that may occur in the future, we must prepare ourselves for a changing, evolving real estate market.

5. Will this become a longer-term trend or, limited to the pandemic period: How long could these changes continue, will prices continue to rise and more people leave cities for the suburbs? Historically, real estate markets have been cyclical and price sensitive. Will rising prices eventually reach a resistance level? Will we be better prepared for future crises?

We are witnessing a changing, active real estate market, which has been a long-standing Sellers’ Market. How long will this continue and what might the future bring?

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