The COVID-19 pandemic has already begun to change the world in which we live. Besides changing the way you design, build, and maintain homes in the future, coronavirus is likely to change the entire real estate industry. As people change their lifestyle and careers to adapt to new standards, many will redefine when, how, and where they define a home.
The future is still uncertain, but the longer we live with the effects of coronavirus, the clearer we can see the future of home ownership. As the world gradually begins to recover, we have identified for you some new opportunities that in the future will need to be taken into account by both sellers and buyers.
- Live longer in the same house
Since the pandemic has affected auxiliary living and nursing homes the most, the generation of baby boomers and later may prefer to live on their own longer. This will not only affect real estate markets, increasing demand for features that have been contributing to many generations, such as ADUs, but can also change the way people finance their homes.
For millennials who are in no hurry to buy their first homes, it may take even longer to make an investment after COVID-19. They may prefer to save large down payments for larger homes offering a more flexible space that will evolve with them and their families in the future.
According to information from real estate analysts, in 2018 the average buyer lived in the same house for 13.3 years. However, as more people move to remote jobs with lower expectations of moving or traveling to work, people of all ages may plan to stay in one place for as long as possible.
- Rely more on your real estate agent
While some housing agents worked to digitally transform the years leading up to the coronavirus, many property transactions were still confusing, paper-filled. Despite the fact that most buyers always prefer personal walks more, virtual real estate displays with a 360-degree view offer a profitable intermediate step for both them and sellers.
New technologies such as virtual and augmented reality have become very important for the real estate industry during social distance. For everyone, they were so effective and convenient that these tools became part of the industry. More housing agents around the world will soon begin integrating these technologies to enhance their customer experience and digitize sales.
As hygiene and safety has become an important part of our lives than ever before, clients will seek out even more valuable information from their agents, after which property checks should be carried out.
In the future, agents will not only be able to advise their clients on important environmental issues such as climate change, but they will also be able to help every customer plan and understand the economic and epidemiological consequences of future pandemics.
- Move toward the suburbs or exurbs
While a strong economy and job creation have made urban life more convenient and attractive in the last couple of years, areas like New York City with a high population density have been hit harder by the pandemic. Prior to this, many people preferred living in high-rise apartments because of amenities, safety and convenience. However, high-altitude ventilation and plumbing systems can transmit viruses, such as SARS and COVID-19, at a much faster rate.
After coronavirus, cities may look different. A global shift towards e-commerce and telecommuting may require less commercial and more industrial space.
At the same time, some experts think that after it, the real estate market is waiting for a kind of “summer boom”, when, say, people with the means begin to purchase suburban real estate in case something similar to the current pandemic recurs in the future. However, this does not mean that they will begin to get rid of apartments in the capital.
In the absence of such usual urban nightlife events as dining at a cafe or attending a show, many city dwellers can direct their energy to various outdoor activities like hiking and much more. Also, review life for yourself in the rural and suburban areas.
- Buying a second home
At the beginning of the distribution of COVID-19 in large cities, those people who had second homes were able to seek refuge in less populated and safer places. This was especially true for short-term rentals and during the temporary closure of hotels. For those who will be afraid of international travel after the coronavirus, buying a second home for indoor recreation can also be an excellent option.
Such acquisition can be expensive, between higher rates for additional taxes, mortgages, maintenance and insurance costs. However, owning a second property outside the city may be possible for more buyers with the strategic use of the right type of leverage.
According to many studies, although such pandemics cause a temporary pause in most areas, the real estate industry is quite stable. While people are acquiring residential property as an investment for the future, houses in nature will always be a significant need, even if there is a turn in the market.
A coronavirus pandemic will not hinder the sale and purchase of real estate, but it will change when, where, how and why we buy. Working with a visionary and competent agent in combination with the latest technology, you can make reasonable investments in your long-term happiness, health and prepare for an uncertain future.
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