My Zeo

  • Home
  • About
  • Blog
  • Lifestyle
  • Health
  • House
  • Pets
  • Fitness
  • Money
  • Contact

Corona Real Estate: 5 Ways COVID-19 Is Affecting the Real Estate Market

July 21, 2020

Estate agent shaking hands with customer after contract signature

With the spread of COVID racing across the nation, states began to shut down as early as mid-March to slow the virus’ momentum. As a consequence of that action, economies screeched to unprecedented halts and whole industries found themselves disrupted like never before.

The real estate market was not exempt from that effect.

Today’s “corona real estate market” is one that’s starkly different from the market we saw just six months ago. While many facets of real estate have been touched in some way by COVID, below, our team shares the top 5 effects that property buyers, sellers, renters, and investors are likely to notice.

1. Commercial Leases in Jeopardy

Non-essential businesses shuttered across the nation between March an April. As a result, companies were forced to adapt to a work-from-home business model.

While some companies found themselves unable to do this, many large commercial organizations stumbled onto success which will likely inform their business models into the future. That could mean the cancellation of commercial building leases as soon as they’re up which could spell doom for investors and developers.

2. Delinquent Rents Without Recourse

Provisions in legislation passed on both federal and state-levels offer renters COVID eviction protections. In some territories, these protections allow renters to go completely delinquent on rent.

In most cases, renters are expected to pay back missed rent payments over six months. As is the case with all rent delinquency though, landlords may find it difficult to collect what they’re owed.

3. It’s a Tenant’s Market

We’re seeing apartments across the country, especially high-end, amenity-driven buildings, slash prices and offer move-in specials to renters. This is in response to waning demand as renters look to conserve money.

Even low-end apartments are seeing vacancies as well since young people are flocking back home to move in with family and pool resources.

4. Lower Mortgage Rates

If you’re interested in buying a home in the corona real estate market, you’re in luck. Interest rates are sitting at all-time lows as the federal government looks to spur the nation’s economy.

Couple those low rates with aggressive prices, the 1031 exchange deadline extensions this post discusses, and other perks, and you’re sure to find an excellent deal.

5. Development Supply Lines are Disrupted

For real estate investors/developers that are building commercial properties or fixing/flipping homes, supply lines have become an issue.

Factories that deliver lumber and tools have slowed production. This is a consequence of closures and social distancing guidelines. As a result, less inventory is sitting in stores and prices have gone up on materials.

Corona Real Estate Presents Both Hardships and Opportunities

There’s no doubt that the corona real estate market is exceptionally disruptive. Depending on what your housing goals are though, you may find that disruption aids your goals.

We hope our tips offered you the topical guidance you needed to steer your ambitions. If you’d like more insight on all things real estate, technology, and more, check out the latest posts in our digital publication.

Leave a Comment · House

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

About Me

Hello all!!!! I'm Darcy and I recently started writing on My Zeo about health and fitness (and part of that important health equation is sleep!). As we are all super busy with life, I try to integrate how to stay fit, relax and be healthy and happy through everyday life.

Facebook

My Zeo

NEWSLETTER

TeraHemp

Dissecting the Cost of Gastric Sleeve Surgery in the UK

The cost of a gastric sleeve in the UK usually oscillates between £8,000 to £15,000. This wide range . . .

Read the Post

Best Wines for Thanksgiving Dinner

As we welcome the brisk autumn breeze heralding the Thanksgiving season, our hearts are filled with . . .

Read the Post

Why should we focus on playing Rummy online?

Whenever people shift the focus to the best options of gaming like Rummy online, then definitely . . .

Read the Post

Important advantages of rummy app that you must know

A Rummy app is a mobile application specifically created for playing the popular card game Rummy on . . .

Read the Post

What are the top reasons for playing the Rummy game?

Everybody is very much interested in getting involved in games and sports in life, and further . . .

Read the Post

Follow Us Online

  • Facebook
  • Instagram
  • LinkedIn

Copyright © 2018 myzeo.com

Copyright © 2023 · Simply Pro by Bloom Blog Shop.