How the Great Shutdown is Impacting the Real Estate Market
Whether you’re looking to buy or sell a home, the Great Shutdown of 2020 has had a significant impact on the real estate market. In the short term, shelter-in-place orders immediately paused real estate action from March through May 2020 as homebuyers weren’t out looking for homes and most sellers weren’t hosting open houses. In fact, over the last two months:
- Millions of individuals have been infected with the virus
- The spread of COVID-19 brought the longest-running bull market in history to a screeching halt
- Over one million Americans have filed for unemployment
- The vast majority of citizens remain indoors in an effort to stop the spread of the virus
These are all things we know for sure.
What we don’t know is the full impact the pandemic will have on all industries moving forward, including real estate. As of today, most real estate experts agree that the long-term impact of the virus is uncertain at best as the industry’s classification as “non-essential” has been crushing the market.
In this brief article, a real estate investor will discuss homeowners’ options for selling this summer. Whether you’ve tried the traditional market and couldn’t find a buyer or renting your home hasn’t worked out, if you’re interested in learning more about how we buy homes for cash in Tampa, fill out Ethical Home Buyer’s instant cash offer form today.
The Reeling Traditional Market
Many homeowners that recently put their home on the market in January or February have entered a lockdown period as buyers haven’t been attending open houses, real estate agents haven’t been able to show homes, and inspectors and appraisers haven’t been able to perform their tasks. Most real estate companies are currently exploring new technologies for showcasing homes, including Facetime tours and Instagram showings. Although utilizing these technologies is better than nothing, most buyers will still want to experience a property in person before investing.
Most iBuyers Remain Temporarily Paused
Potential buyers that are open to utilizing technology to conveniently purchase a home also remain in a holding pattern as most iBuyer home purchasing programs remain temporarily paused to help stop the spread of coronavirus. Buying a home through this model largely depends on the location of the home, the restrictions in that area, and the policies of the iBuyer company you are utilizing. However, most large iBuyers remain cautious about reopening their website to buyers.
Renters Face Widespread Cancellations
Both short-term and long-term rentals have experienced a variety of issues in the last few months. Short-term vacation rental services like AirBnB have been banned by some local governments. Moreover, with travel restrictions in place, most potential vacation renters have put their plans on hold. In fact, Forbes is referring to the drastic drop in short-term rentals as “Cancellation Apocalypse” as landlords have seen a 75 percent decline in reservations this summer.
Receive a Cash Offer From a Real Estate Investor
As the future real estate market faces uncertainty, homeowners looking to sell their house in the upcoming months do have an option: contact the team at Ethical Home Buyers. If you’re looking to sell your house in a week or less, fill out our instant cash offer form for free. If your home meets our buying criteria, we will make a fair, all-cash offer and the final decision to sell will be up to you. If you do elect to sell us your home, you receive cash in a week or less.
Disclaimer: This website is not a substitute for legal advice. If you have a serious legal, tax, or other issue requiring professional advice, please consult with an attorney or CPA.