As the current COVID-19 pandemic is causing a profound impact on society, the real estate industry is on the receiving side of both positives and negatives for buyers and sellers alike, especially those in the California and Arizona markets. Many realtors were affected with many clients whose properties were scheduled to hit the market deciding to postpone listing it. But within these last two weeks, property sales have seen an uptick and it appears that the real estate market will soon be back to normal.
“We have listings coming up in both the Point Loma and Mission Hills areas of San Diego, which are very desirable locations,” says real estate expert Mike Corica, who hopes that the properties will go for their asking prices. “Some sellers are on the fence but once we show them how quickly properties are selling and how housing prices have not dropped during the shelter-at-home period, they change their minds for the fear of missing out on additional profits.”
The pros and cons from the coronavirus pandemic
According to the Los Angeles Times, “Sales were down across the board in April, with the pandemic disrupting and negating many deals in escrow, but home prices continued to see marginal gains from a year earlier.”
In a recent Forbes article, New Study Explores How Coronavirus Has Impacted Buyers In the Real Estate Market, a study indicated that “80% of would-be-buyers have either delayed their housing search or stopped it altogether” with 60% of those buyers worried about their current or upcoming employment statuses and 54% of them indicated that “the inability to see homes in person as a main driver for their hesitance to buy.”
Another factor to consider is that buyers may be looking at how the current epidemic has them re-evaluating their current home office needs. From a she-shed to accessory dwelling unit (ADU), those who are able to work remotely are looking more at in-home features versus location and driving times.
Overall, COVID-19 is affecting a buyer’s decision, both good and bad while offering them other options that they may have never considered. Either way, the drive for investment opportunities in the real estate market continues on.
If you need help navigating on real estate opportunities, please reach out to the I-Deal Homes Real Estate team. Our team is available virtually and ready to help you with your real estate needs.