As a licensed seller of real estate in New York State for over 15 years, I have observed various types of past markets. While we often think only of buyers, sellers, and/or a neutral market, the current pandemic and associated health and economic crisis will likely have some longer-term impacts. and ramifications, which could permanently change this horizon. With that in mind, this article will attempt, briefly, to consider, examine, review, and discuss, 4 specific real estate components, which are likely to undergo game-changing changes and ramifications in the long run.
1. Real estate market, prices, buyers, etc.: Since, in many states, the restrictions imposed, in the so-called social distancing, requirements, home sales, marketing, etc., have for the moment completely stopped! When this crisis is finally over, how might this market be affected? Although the combination of low interest rates and repressed desire, on the part of some, to participate in this essential part of the American Dream, could, to some extent, balance other factors, I think we will witness, in general, in most areas of the nation, reduced prices, because there will be fewer qualified potential buyers. This is due, in large part, to the dramatic drop in stock market prices, etc., and therefore many will find the value of their personal assets to drop considerably. Perhaps there may be some government programs to help, but these would have to be sure, we are not witnessing another housing bubble, caused by inconsistent financing programs!
two. Storefronts/Retailers: As many have had to develop alternative technology-based ways to sell their products, the current trend, already challenging the mainstream retail market, has become even more stressed. For the foreseeable future, we probably won’t see any significant improvements and thus more vacancies. How might this affect, especially smaller owners, in terms of their ability to maintain and afford the property? It is also likely that many companies will decide that they need less space and obviously that will have a considerable impact!
3. Office space: This crisis has made it necessary for many companies to have employees, to work remotely. The longer this continues, many corporations will probably believe and realize that they don’t need nearly as much office space and associated expenses. How would that affect the number of vacancies and the price of the lease?
Four. Rental apartments: Since fewer people will probably be able to own their own homes, more will be looking for apartments for rent! However, with many likely to be more of a post-depression mindset, due to the economic and fear aspects of this crisis, the luxury apartment markets are likely to suffer.
The immediate ramifications of this crisis, from an economic perspective, are likely to be significant in the real estate industry and associated markets! To be prepared!
