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Wednesday, August 19, 2020

What 2020 Has Taught Us About the Value of Real Estate

I recently read a bunch of things on how coronavirus changed the whole world, with a focus on economy but so much more. Here's a post from a reader on how it has affected the real estate market.


Coronavirus turned the world upside down overnight, plenty of businesses and companies are taking a big economical hit, some are even real estate agencies. A lot of people lost their jobs or got their pay cut in half, leaving them with no choice but to move out of their homes or apartments. Here are some things and consequences we need to consider during this global catastrophe.

Everything is unpredictable

2020 is definitely full of surprises, but coronavirus truly keeps changing the way we live our lives every day. Many aspects of the economy, such as property markets took a big hit during this time. Everything has changed, even the way we buy houses...no more going from property to property and looking for your dream home in real life. Also, the number of people who have been unemployed or have a significantly smaller income doesn’t want to invest in a house or an apartment, since the majority of them can’t pay it off. It’s one of the biggest declines in recent years that’s for sure.


Renters

A lot has changed for the renters as well, but the good thing with this is that a lot of landlords decided to postpone the monthly rent since a lot of people couldn’t afford it. Also, if you are looking for an apartment to rent, it’s actually a fairly good option, because a lot of people are moving out to live somewhere else.

You don’t need to do anything in person, to find the best apartments in DC you could just look at them online and decide. Don’t worry, every landlord has to follow the rules and regulations before letting someone new in, which involves cleaning and disinfecting the apartment. It seems that the renters actually had it okay during the pandemic, it was more on the landlord’s expense.

Buyers

The real estate market literally froze at one point during the lockdown. All types of moving was strictly prohibited, literally making people stay at their homes. But many weren’t so lucky and faced eviction and foreclosure.

With the wounded economy comes job loss and lesser pay, meaning that a lot of people can’t pay their mortgages properly like they used to. A lot of people don’t want to invest in something like a house during a global pandemic, even if they have all the funds necessary and have been planning to move for a while. It’s the uncertainty of it all that scares the people away. It will take some time for people to get used to the new way of life and for the market to heal and start running smoothly again.

Additional things

Health comes first, doesn’t matter if you want to buy a new house, or want to get rid of the old one - if it can wait. Better be safe than sorry. Also being ready to adapt in these times is crucial, so be smart about everything, but also be reasonable and mindful to others, regardless if you are a renter, buyer, or a seller!

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