The Effect of Coronavirus on Real Estate

The worldwide coronavirus pandemic is just beginning to have serious, long-term effects on the real estate and housing market, thrusting domestic and foreign investment into unprecedented turmoil and uncertainty. The crisis is sure to have immediate and future consequences on the way most industries will conduct business, including the way investors will purchase and sell residential and commercial properties.

Amid stay-at-home orders and social distancing guidelines, the day-to-day operations of the real estate industry are being conducted like most businesses today, via online communication and video conferencing systems.

Housing Market Historically Performs Well in Times of Crisis

With the crisis still filled with so many uncertainties, there is no way to predict what is to come tomorrow in the housing market, let alone weeks and months from now. The good news is that hard assets like real estate are typically uncorrelated to stock market fluctuations and have performed well in times of crisis and market volatility.  The bad news is that every day presents another series of unprecedented uncertainty and action.

The U.S. housing market came into the coronavirus pandemic dealing with a significant shortage of homes that are for sale, with an increase in demand stiffening the competition industry-wide. Investors may be looking to list homes for sale now to take full advantage of increased demand and higher prices.

Foreign Investment Expected to Increase in Short Term

Confidence in foreign investment has faltered, and many investors are transferring their finances to hard assets, and the real estate housing market is benefitting. Investors have seen movement in rental real estate growth from Asian countries in the last few weeks.

One area that is sure to slow in a big, impactful way is the commercial real estate industry. The market is anticipating loan default rates to rise as development and production fall. With workers ordered to work from home or furloughed, companies are doing what they feel is necessary to help prevent the spread of the deadly disease, putting the health of their employees, customers, and the public at large as the top priority.

Housing Market, Economy Play Waiting Game

As individuals and businesses scramble to figure out what each next day holds, the real estate and housing markets wait with the rest of the world to see how widespread the virus becomes and what impact it will have on the economy and the real estate industry. There simply is no way to predict what the short-term or long-term effects will be and what the industry will look like a few months from now, let alone a few years.

Markets in the U.S. eventually recovered from the 2008 housing market collapse and recession. Experts fear that the chances are good that the coronavirus pandemic could put our economy into a full-blown recession that will have implications for the foreseeable future.

Log Onto MyEListing Today for Available Commercial Real Estate Properties

In this time of great uncertainty, the professionals at MyEListing continue to provide a free online resource for commercial real estate that is more important than ever. For the latest updates on the housing market, and to post or view available commercial real estate properties, log onto MyEListing today.

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