The health crisis caused by COVID-19 has notably affected the real estate sector. Experts do not foresee consequences as dire as those caused by the 2008 financial crisis, but nevertheless there is a fair amount of uncertainty regarding the market’s evolution in the short- and medium-term.
What is true is that the sharp halt of operations during the lockdown and the complicated economic panorama has caused a 180º turn of a real estate market that had been breaking records for several years. Even still, in the difficult circumstances nowadays, what some see as obstacles to the buying and selling of homes in the new normality, others see as opportunities.
Buying and selling homes in the new normality: Is it a good idea?
Is it time to buy?
In the case of small investors or companies with liquidity, this seems like an optimal moment to invest and move up real estate operations planned for the next few months. In the second and third quarters of 2020, the prices of buying and selling real estate underwent a slight adjustmentand they are still expected to fall somewhat. It won’t drop as much as in 2008, but it will decrease enough so as to make ruling out an investment opportunity an unwise decision.
This opportunity may also be an incentive for those who were already thinking about purchasing their primary residence or a second home. And not just for this adjustment in prices, but also because in a real estate market with less movement, buyers have more time to find the residence they really need and to compare the offer without having to jump to decisions.
On the other hand, you have to take into account that the most optimistic market forecasts point to arecovery, at least a partial one, that will be here in a few months. This will of course depend on the economic measures adopted and the evolution of the job market and interest rates, amongst other factors. Given this, in this panorama, letting time pass by may mean letting opportunities pass by.
To sell or not to sell?
When property prices are frozen or are trending downwards and the economic trends are in the red, the logical response is to wait for better times before selling. This would mean avoiding the need to adjust prices, unless the home is overvalued.
However, it is possible to take advantage of this holding pattern to highlight the value of properties. This is a good time to take advantage of all the benefits of the internet to improve visibility and marketing strategies.
Far from stopping cold, now there's a margin of time to attend to the presentation of real estate aspects, offering more and better information and attending to clients with more care. Perhaps the decision to buy won’t be immediate, but a good part of the work will be done by the time the panorama becomes more optimistic.
The buying and selling homes in the new normality is subject to a series of factors that may vary in a short period of time. The market has slowed down, but far from seeing this as something strictly negative, you can also view it as an open door for both buying and selling opportunities.
At Spainhouses, we can help you find the house that you've been looking for as well as publicise your properties in the best online showroom should you have a property you’d like to sell. Visit our webpage or publish your advert to find the opportunity you're looking for.