How has the pandemic affected your plans to buy or sell real estate? Did you put your plans on hold or did you take bigger risks? The rest of the industry – and the world– definitely faced a similar dilemma.
If you’re wondering about the current state of the industry, especially if you’re in the market for San Francisco homes for sale, here are some ways the global crisis has affected real estate:
- Real estate buying and selling activities continue
- Rentals of vacation homes continue to be lucrative
- Real estate-related technologies are on the rise
In other words, people have continued to buy and sell properties. In fact, real estate has become the refuge of investors, buying homes or properties in areas outside the bigger cities to sit lockdowns out with enough of the outdoors to alleviate the stress and tedium.
Tech companies also thrived. Zoom was one such company. Amazon exploded. Food service apps were indispensible. While much of the economy tanked, there were sectors that did better than usual. Those who continued to stay employed and work from their dinner tables found themselves with more disposable income because they didn’t have to spend on gas, commutes, lunch outs, after-hours drinks with colleagues, weekend getaways, or replenishing their business clothes. That allowed them to add to their nest egg for, say, the down payment for a future home.
These factors actually pulled up the number of sales of previously owned homes in the United States, rising 24.7% in August 2020, according to the National Association of Realtors. The positive change particularly affected homes for sale in the suburbs and rural areas. Mortgage rates also hit rock bottom, so those with the means took advantage of it.
It’s a different picture, though, when it comes to foreign real estate investments, which experienced a downturn. This trend is expected to continue until COVID-19 cases worldwide are better managed, economies reopen, and tourism and travel activities resume.
If your property is strategically located, you could get a steady stream of income from it. For instance, it’s advantageous to have a vacation home in a location with opportunities for outdoor activities, or one with lots of outdoor space. There are many remote workers and long-term renters (from a few weeks, months, or years) that will be interested in moving to more scenic locales. It’s a great venture to explore or a great asset to keep.
The industry is keen on adopting anything that makes it easier to sell homes. Take virtual home tours. These have been in existence for years but the pandemic has spurred greater usage and interest. New technologies have been used to make it more attractive for prospective buyers. 3D cameras and livestreaming on social media platforms enable buyers to go on visually engaging guided tours.
Some San Francisco real estate agents and property managers have also shifted to secure online channels for collecting documents, rent, and other transactions. Online meetings among Realtors and buyers or sellers have become the norm, too. Certain software or programs have allowed these activities to be streamlined and carried out remotely.
Looking forward
Despite the progress in COVID-19 vaccinations, there’s still some way to go before we completely control the uptick in variants so that we can put the pandemic behind us. In the meantime, you can still find ways to buy or sell homes safely and get the most out of your investment.
Be sure to consult an expert in San Francisco real estate if you have any questions. Look for a trusted name like Amir Hardy with years of experience in the industry. I will guide you every step of the way, so you can acquire or sell property with maximum profit. Email me at amir(dotted)hardy(at)compass(dotted)co or call 415.602.0570.