As expected, there’s been a real estate market slowdown due to Coronavirus. Homes are still being bought and sold in Massachusetts, but activity has experienced a noticeable decline. Here are a few reasons why and what you might consider if you’re debating whether to buy a home right now.
Reasons for Real Estate Market Slowdown
1 – Quarantine
Real estate has been classified as an essential business, so why has the market slowed down? Quarantine is the primary reason. Many households are under quarantine due to a confirmed COVID-19 diagnosis, recent travel, flu-like symptoms, or the choice to self-quarantine. As a result, new listings are delayed in coming to market, even though Spring is typically the busiest time of year. Additionally, buyers are venturing out to fewer homes for showings; they are being more selective based on photos, virtual tours, and other information available on listings. The decrease in physical activity naturally results in fewer home sale transactions.
2 – Loss of Employment
Business closures, layoffs, and furloughs are another reason for the real estate market slowdown. Buyers who are laid off or on furlough are putting their home buying plans on hold. Some sellers are doing the same if they cannot qualify to purchase a replacement home due to their employment status. Additionally, pay cuts and general uncertainty about job security are prompting many to take a pause. As businesses receive government assistance to rehire employees, this should help.
Why It Could Be a Great Time to Buy
If the above do not apply to you but you are still worried about the market, consider this…. Real estate has historically been the most solid type of investment. Even with short-term fluctuations, it always increases in value over the longterm. It’s likely that the current real estate market slowdown due to Coronavirus is temporary and will lead to pent up demand once restrictions are eased. Given how hot the market was prior to this crisis (with bidding wars and dramatically inclining prices), could the current slowdown be the perfect opportunity to buy? The fact remains, you can still buy and sell a home right now! Precautions are being taken for the safety of buyers of sellers by all professionals in the industry, from agents to lenders and attorneys. With interest rates remaining low and less competition, it’s an ideal time to buy a home.