In the last couple of months, we have experienced a lot of adjustments and it was about time to think what the pandemic is going to leave behind when it’s over. Is it possible that the experience of being that much at home will change how people feel about their houses? Will home buyers seek different and new property features in the future? It’s the most possible scenery for the post-pandemic real estate world.
Changed homebuyers preferences
Consumer real estate preferences will definitely change if we think about more homebuyers searching for home-office space or private outdoor spaces. Also, there’s a chance that people will want to escape the city and look for properties in rural areas. Another fun fact is that a lot of people are adopting new pets these days, for sure in search of companionship, According to the Houston Agent Magazine, homebuyers after the pandemic will prefer:
- Properties in the suburbs
- Walkable downtowns
- Space for a personal gym
- Pet-friendly features
Reconfigured commercial real estate spaces
But if the residential real estate preferences will change, think about the industrial real estate ones. As commercial and industrial spaces are in need of physical reconfiguration, this kind of property will change the most. The pandemic is changing the relationship between a building and its visitors, whether they be providers, clients, or employees. What could we expect?
- Coworking spaces with different amenities and distribution
- Automated entries
- Intelligent buildings
- Package lockers
Real estate market trends
Besides the changes in the types of properties and the features that will be requested in the future, we’ll be able to observe also diversities in buyer and seller patterns or behaviors. For example:
- Prices will drop down
- Stiff competition will still be present in the entry-level market
- More foreign buyers in the US
- Second homes in remote areas for those who can afford it
- The luxury market will thrive
But home buyer’s preferences are not the only thing about to change in the real estate market. Realtors’ work will show modifications as well. Now, most of the agents are focusing on branding, education, and training, so they will be prepared for the next phase. For sure, they will not be the same they were previous to the pandemic. Will virtual open houses and virtual closings continue to exist after the virus? We think it’s probably that we will make great use of this new variety of tools, even when they will not be strictly necessary. Virtual reality will continue to save the time of commuting and providing an easier solution for busy calendars, for example, for both realtors and buyers.
55% of sellers have stopped their offering but they are only delaying it for a couple of months. Only 8% dropped out of the market, according to a NAR survey. This tells us, even if we don’t know if real estate activity will start recovering by early summer or if we’ll feel the impact of the pandemic for the rest of the year, we do know the situation is eventually going to retrieve. As an investor, how are you preparing for the next phase?