How Coronavirus is Affecting the Local Real Estate Market

How Coronavirus is Affecting the Local Real Estate Market
Video Transcription

So a week ago, the real estate market was hot.  Then Coronavirus happened.

Now what?

How Coronavirus is Affecting the Local Real Estate Market

This is Rory Gill at NextHome Titletown Real Estate, and of course the health of our family, friends and neighbors is our highest concern. Yet, real estate professionals, homeowners and buyers are rightly concerned about what lies ahead.

Nobody knows what’s going to happen and I don’t either.

What I can say is that things will change and I can point out some things to keep an eye on in the coming weeks and months.

First, I expect that some of the trends that began before the crisis are going to speed up. In Boston, we started to see a tale of two markets, the luxury development and everything else. In the luxury sphere, everything tended to be overbuilt and based on the economy of five years ago. And because those luxury buyers tend to have more investment assets, they tend to be more international and depend on high salaries. They may be more vulnerable to the disruptions in global travel and to the stock market.

So I expect to see the trend in the luxury sphere of higher days on market and a dip in demand to continue. And that applies to luxury sales and luxury rentals.

But then there’s everything else.

There, I point to some fundamentals. There remains a housing shortage in the Boston market, and real estate itself wasn’t a fundamental contributor to this financial crisis. That means that demand remains high fundamentally and structurally. So especially if we have a fast resolution to this health crisis, then those lower, middle, and even upper-middle segments of the housing market may bounce back too. Still, we need to be prepared for longer days on market, longer time in escrow as lenders and vendors get back on their feet and somewhat volatile prices.

So what does this mean for you?

As a seller, especially outside of luxury sales you can expect a return to normal eventually. This, of course, depends entirely on how we recover from the health crisis.

Your listing may be on the market longer.

Your agent may need to work harder.

But demand for housing in Boston is still there!

As a buyer, you and your agent should be watching the market every single day. You may find opportunities that weren’t there just a few weeks ago. So I recommend that you get set up with a lender and agent right away so that you can move quickly when you spot the opportunity as you’re looking.

As an investor, this may be what you’ve been waiting for a while. Market volatility may reveal some great cashflow opportunities that were virtually nonexistent in the greater Boston market just a few weeks ago. At NextHome Titletown Real Estate, we’re experts in real estate and we can advise you there.

For the most important things now your health and your family, follow the guidance of public health experts. Together we can get through this.


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The property listing data and information set forth herein were provided to MLS Property Information Network, Inc. from third party sources, including sellers, lessors and public records, and were compiled by MLS Property Information Network, Inc. The property listing data and information are for the personal, non commercial use of consumers having a good faith interest in purchasing or leasing listed properties of the type displayed to them and may not be used for any purpose other than to identify prospective properties which such consumers may have a good faith interest in purchasing or leasing. MLS Property Information Network, Inc. and its subscribers disclaim any and all representations and warranties as to the accuracy of the property listing data and information set forth herein.
MLS PIN data last updated at September 26, 2020 8:49 PM ET

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