The impact of COVID-19 is believed to linger long after the vaccine is administered. Many industries, businesses, and communities will be forever changed by this virus, and there are also potential causes for concern in the property market. If you’re looking to buy a home or move places as a renter in the coming months or years, how will the coronavirus affect your choices? Let’s talk real estate and COVID-19.
Uncertainty about property prices
As it happens, PropertyGuru Singapore has conducted lots of research into this very topic. They surveyed homebuyers and landlords in Singapore, getting views and opinions on certain things. Two main things stood out from their findings, the first being that 55% of residents are uncertain about property prices.
If you look across the world, this figure would probably remain the same. There’s so much economic uncertainty, making it hard to value properties these days.
When buying a home during COVID-19 times, this can put you off making a real estate decision as you’re unsure if it will be a good one or not. Find out more about home affordability in US cities here.
Tenant screening changes
The second thing the study identified was that 52% of landlords intend to screen tenants more carefully. After such a turbulent year, many property owners want added security when choosing tenants.
So, they will focus more on income levels and good lifestyle habits, ensuring only the best are found. If you’re a renter, this can potentially make it even harder for you to move out and find a new place.
Infographic on real estate and COVID-19
As such, you can deduce that COVID-19 will have a very big impact on your ability to buy or rent homes in the coming year or so. If you’d like to see all of the findings through the research, check out the infographic below:
Infographic designed by: PropertyGuru Singapore
I’m really surprised how prices have increased in Colorado due to demand. I’d thought the reverse would have happened during Covid-19, but it looks like a nationwide phenomena.
Same in Connecticut
Here in Vermont it’s been insane. Houses are listed for a day and are sold sight unseen. Buyers are getting far more than they are listed for on their grand lists and often there are bidding wars. Additionally, many condo owners have been successfully working remotely and decided to make the state their primary residence and it’s having an impact on the schools. It’s great to have younger families, but being hit with this explosion all at once is hard to maneuver. Crazy!
We have seen a surge in real estate prices during the pandemic and out-of-control bidding wars. A semi-detached house not far from here was listed for $500,000. The seller received 53 offers and the house sold for $850,000. Unbelievable!