Along with all business and industry, real estate selling has been deeply affected by the coronavirus crisis. The Department of Homeland Security declared residential real estate to be an essential service, but many cities and states have enacted specific restrictions to protect public health.
As healthcare professionals work tirelessly to contain the risk, states are beginning to open up. What real estate trends can you anticipate this summer as we enter the “new normal?”
The so-called “silver tsunami” continues as baby boomers enter retirement age with plans to downsize. At the other end of the scale, percentage increase in Generation Z mortgage applications experienced triple-digit growth over a period of one year. These factors point to an increase in demand for smaller, more affordable homes.
Experts were already predicting a recession for the 2020-2021 period. Waves of business closings and unemployment claims triggered by the coronavirus crisis have turned talk toward a possible depression. Unlike the financial crisis of the late-00s, this economic climate is not driven by housing. Low interest rates could help real estate selling weather the storm.
Move to the Suburbs
Suburban growth was already on the rise, thanks to millennials starting their own families and looking for affordable housing. Watch for this trend to continue, as health concerns cause more people to leave densely populated urban areas.
Rise of iBuyer
iBuyers, who use automated valuation models (AVMs) to make cash offers on homes sight unseen, appeal to sellers who are looking for speed and convenience. While these programs have grown in popularity, they remain a hotly contested topic in real estate selling.
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