The current corona pandemic that has affected continents all over the world has caused many complications to all industries and businesses. The jobs of everyone worldwide are either being resituated to a home environment, or being stopped for the time being.
If you are a part of the real estate world, you are probably wondering how the virus will affect the industry.
With millions of people losing their jobs during this health crisis, real estate experts are afraid that it will cause the market to crash, as less people will have the finance to buy a home, or even the time too.
With that being said, another thing to consider is that with the crashing of the real estate market, more jobs will be lost, as the industry makes up a large part of the country’s overall economy. So, this will ultimately lead to a major dip in the economy until the pandemic is over.
For a better understanding on how exactly unemployment will affect the real estate market, experts took a look at previous similar situations. While one would assume that an increase in unemployment rates would lead to a dip in the home sales, but according to research conducted by experts, from the years 1992-2003, a decrease in employment led to a rise in home sales for the American real estate market.
It wasn’t until 2007-2010 that home sale rates decreased as the unemployment rates dropped.
Then, from 2015-2019 despite the continuous falling of the home unemployment rate, the rate of home sales did not seem to drop or rise, and remained still.
So, it may very well be that the unemployment rates have no impact on the home sales in the real estate industry of America.
But people would argue that this time is different, as the situation is a lot more severe. And that is true, which means that we have no way of completely predicting what will happen to the real estate world during the current time. The unemployment rate may reach such a high that it will undoubtedly affect home sales.
To summarize for anyone curious as to what exactly the real estate world will be like during COVID19, we can say this:
There is no doubt that the real estate industry will face challenges this year, it will definitely not be breaking any sale records in the near future. However, this does not mean it will have to suffer any long-term damage.
As soon as the current epidemic is controlled and the economy recovers – which with the help those who have lost their jobs are receiving, will be at a fast rate – the real estate world should regain its footing and have no problems in a year or so.
The best thing to do in a time like this, is just wait and hope, and do your best to not expect any fast results. Only time can fix things, and it surely will!
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