The Covid-19 pandemic has undoubtedly impacted the entire world in unimaginable ways. With economic slowdowns and various sectors experiencing hardships, the real estate industry is no exception. The pandemic has caused various changes in the real estate market, leading many to wonder if it’s a buyer’s or seller’s market.
The real estate market has become volatile because of the pandemic, casting doubt on whether it is a buyer’s market, a seller’s market, or a neutral market. With governments imposing lockdowns and travel restrictions, the real estate business suffered tremendously as showing properties became difficult. Additionally, financial difficulties and uncertainty have deterred people from making significant purchases such as buying a new home.
The real estate market is experiencing a change in demand with people no longer interested in properties within the densely populated city centres. Instead, people are seeking out suburban homes and properties in less densely populated areas. This change has created a buyer’s market, as there is a surplus of properties for sale, due to an increased supply and less demand. In return, sellers are reducing prices to meet the needs of buyers and to boost sales. People want larger homes with more outdoor space as working from home is becoming the norm. The need for a home office and a backyard has become more essential, hence the shift to suburban areas.
On the other hand, the pandemic has caused some people to hold back from selling their homes due to uncertainties, leading to fewer homes for sale in some areas. This scenario leads to a seller’s market, as there is more demand but less supply of homes. The limited number of homes for sale is leading buyers to assertively compete for the limited homes available in the market, thereby increasing the prices of these homes.
The impact of Covid-19 on the real estate market is both a blessing and a curse. For buyers, if they are looking to purchase a home, it is undoubtedly a buyer’s market. For sellers, it depends on the location and type of property they own; it could be a seller’s market or a neutral market. However, with the uncertainty of the pandemic, it is best to consult with a professional before making a decision.
In conclusion, the impact of Covid-19 on the real estate market has created a volatile and ever-changing market. The changes in the market have led to both a buyer’s and a seller’s market, depending on the location, the type of property, and the current demand. Buyers and sellers must keep up-to-date with the changes in the market and seek professional advice before making any significant decisions.