With the U.S. Government mandating the temporary closure of businesses here and there, people are wondering what this could mean for many industries, including the real estate market. Each state has determined whether real estate services are considered essential or non-essential. Another thing that’s for sure is that homeseekers that were planning on investing in a new home before the mayhem are now reconsidering where to put their money. We take a look at some of the impacts that COVID-19 has had on real estate thus far.
Delays on Closing Contracts
Normally, real estate is not subject to uncertainty and unpredictable curves within the stock market. With COVID-19 looming among us, it has become hard for agents to close deals on real estate transactions. Even if sales are highly likely to go through, the impact of COVID-19 still plays a major role in the decision-making process for homeseekers. Self-isolation and the overall fear of contracting the virus have also caused homebuyers to place a hold on their contracts, which slows down transactions. Despite the fact that some investors see this as a golden opportunity, customers think otherwise.
A Silver Lining for Luxurious Properties
Although potential clients may be hesitant with purchasing property, this is not necessarily the case with investors overseas. Wealthy buyers from China have been interested in purchasing luxurious properties after news of discouraged home buyers emerged the news. Chinese buyers view the U.S. as a safer option to invest in and purchase real estate property due to the civil unrest that has been taking place in their economy. Some international investors want to park their money in first-class world economies, and the U.S. is one of them. We can expect to see a greater demand from not only from China but from other wealthy households all over the world.
Is Homebuilding Essential in Texas?
If you want to take advantage of this time to purchase real estate in Texas, then you’re in luck. The state of Texas has relied on the DHS’s recommended “critical infrastructure” workers, which includes residential and commercial real estate services. Workers and clients are obliged to practice social distancing and zero physical contact when meeting to conduct transactions and contracts.
The Lozano Real Estate Group: Here to Guide You Through Your Concerns
Our professionals are just as concerned as you are when it comes to a home you rent, own, or were in the process of closing a property contract. Contact us today to learn more about how our business is operating and how we can help aspiring homebuyers during these unprecedented times.