What Could a Second Wave of COVID-19 Look Like for Real Estate?

 

The coronavirus… What can we say about the horrible impact this virus has unleashed on the world that hasn’t already been said? There have been tens of thousands of deaths and millions who’ve contracted the virus. Thousands of businesses across the nation have had to close their doors, some for the time being and others for good. But, real estate isn’t one of those industries that’ve been crippled by the virus.

 

In the HomeLight Q2 survey, 79% of real estate agents who participated said that in June, their local market has reached pre-pandemic levels. What’s more interesting is that 50% of agents believe the home values in their market will rise during the second half of the year. 

 

Pretty promising, right? We think so! Yet, one has to wonder what a second wave of the virus would do to the real estate industry. Will it experience the same decline at the start of the wave and a rise not too long after? What will the future of real estate be like?

Already agents have had to think on their toes in order to keep their businesses afloat. 46% of agents surveyed said they’ve relied on virtual walkthroughs and 3D tours to show houses to prospective clients. Twenty-five percent said they’ve been using video conferencing programs like Zoom, Facebook Live, or Facetime to meet with clients without physically being there.

 

Technology isn’t just being used for open houses, showings or meetings. Technology allows for many aspects of the transaction to be done remotely or with minimal person-to-person contact. 

 

Programs like DotLoop allows agents to compile all of the documentation that goes with a transaction. They then can share those documents with other parties involved with the transaction.

 

Need the documents signed? Don’t worry! DotLoop and DocuSign make it possible for the documents to be signed with your eSignature. Plus, unlike trying to schedule a time for everyone to come to the table and close the deal, documents can be signed and sent back instantly.

How’s that for efficiency?

One of the biggest concerns agents have about today’s market is having enough supply to meet demand. There are a lot of people looking to buy, but sellers are still hesitant to go forward with any sales due to a variety of factors. 

 

Some seller’s are still concerned about possible infection when allowing others into their home. Others are concerned whether or not the deal will fall through because the buyer wasn’t able to secure a mortgage as a result COVID-related job loss or furlough.

 

But, with that said, a small group of agents (4% of agents who participated in the survey) say they don’t think the market will change at all. So, it really depends on the local market. If you’re trying to move to a big city, you may have more options because many city-dwellers are moving to the suburbs or rural areas. However, if you want to find a quiet place in a cozy little town? Well, inventory may be limited. 

As a whole, the United States is scrambling to make it out of this first wave of COVID-19. With the lack of federal guidance and regulations, it feels like everyone must fend for themselves and hope there isn’t a second wave. But, if there is, you can rest assured that if you ever need to find housing or sell your home, your local real estate agent will be there to help you through it.