The true economic impact of the coronavirus pandemic is something we can only speculate on today, as the entire story has yet to be told. There has already been a massive downturn in a lot of industries. But while there certainly are a lot of companies that have decided to cut their losses and call it a day, many have chosen to wait things out and do their part in helping the economy turn around. While this is likely going to take some time to happen, the best of the American spirit is truly manifesting itself.
The San Francisco real estate industry is not exempt from the difficulties being faced by the American populace as a whole. Investors are showing less confidence and many now probably have fewer resources to work with. While there will always be winners and losers in every crisis situation, the concern in the days of COVID-19 is not how to take advantage of the crisis to make big bucks, but how to weather the crisis and stay afloat.
Dealing with the “New Normal”
One of the most painful realities experienced by Americans who were unable to work or run their businesses for several weeks was their inability to meet rental payments. More astute landlords and property owners foresaw this problem, however. They were able to come up with varied payment schemes and set more lenient policies to accommodate tenants facing difficulties.
Accompanying the shortage of resources is a decrease in the number of real estate buyers. This downswing can also be attributed to factors like economic insecurity and social distancing concerns.
Brokers who want to stay in business need to venture into novel means of showing properties. Many have adapted by using information technology tools to set up virtual visits. When on-site property visits are absolutely necessary—like, say, the buyer wants to see the property in person before finalizing the purchase—strict sanitation and social distancing protocols need to be followed.
These days, never-before-practiced health safety measures count for a lot. Seeing brokers disinfecting surfaces like door handles, countertops and the like, as well as using appropriate personal protective equipment instills a sense of confidence and security in potential buyers.
Staying a step ahead
Amid the overall slump in economic activity, San Francisco real estate continues to command top dollar. While the market has dipped in comparison with the same time last year—and some sellers have withdrawn their properties from the market—the general outlook still looks promising.
It will take a lot more than a pandemic to crash the robust housing and industrial space market, especially in California. There is a good degree of confidence that the government will take positive measures to tide the economy over, even amid the crises being experienced today.
Zero interest rates, a 2.2 Trillion-dollar stimulus, and state policies that support business and industry is expected to result in the normalization of the real estate industry.
Real estate brokers are aware that the forthcoming new normal will not be characterized by Americans making major changes in their way of life, downscaling their lifestyles, or something as outrageous as venturing out into and living in the wilderness. The American people, especially in California, will bounce back and brokers will, once again, be busy offering commercial and residential properties to a resurgent market.
Handling commercial real estate in the new normal that will follow the COVID-19 crisis means delving into new means of marketing, and exploring new ways of providing buyers with the financing options that could keep them afloat until things blow over.
Ready to put your property on the market? Whether you’re looking for San Francisco homes for sale or commercial properties, work with the top San Francisco real estate team today! Get in touch with us at 415.602.0570, or send an email to amir(dotted)hardy(at)compass(dotted)com.