How Covid-19 pandemic has affected the real estate market
As we steadily try to adjust to the new normal that has sprung up in the wake of the COVID-19 pandemic, we can’t help but think back on how things used to be and how the crisis has significantly affected most areas of our lives.
From lockdowns activations that stemmed from critical health concerns to the adoption of homeschooling and a work-from-home routine, many industries have felt the impact of the crisis and adjusting has been a huge learning process.
While working from home, lots of people have slowly begun to take cognisance of their surroundings, including their houses and neighbourhoods. The reality of a small space to live, work and play in, is not lost on them. Families have had to dedicate more time to critically inspect their environments and see how best they could maximise them.
Homes are slowly becoming a substitute for offices, schools and recreation centres. A family of four, for instance, may suddenly discover that their home which was adequate in the past is suddenly not enough for everyone to have a work or study space and barely enough legroom for the children to play in.
The outbreak also caused a reduction in the demand for properties with fewer sellers willing to put their properties on listings. In Nigeria, construction sites were forced to shut down, real estate deals were put on hold and house inspections were a no-go area.
Even banks were not left out as the pandemic caused a reduction in staff available for banking activities and this made real estate transactions slow and difficult. Economic activities around the world are slowly readjusting and businesses and individuals are finding ways to get back on their feet slowly. But will things ever get back to normal?
As we slowly adapt to the new normal, there have been many trends that have affected many industries and the real estate industry is not left out.
With businesses choosing remote work overcoming in every day to the workplace, and schools putting out e-learning schedules for students to follow at home, there has been an understandable change in the real estate needs of people all over the world.
Using the family of four earlier mentioned, this means a dedicated workspace for the adults, a study area for the children and if they can afford it, a relaxation spot outside for the entire family.
Real estate needs are slowly shifting from the need to buy or rent the next ultramodern workplace to the need to buy or rent a home that would cater to the needs of every family member. This simply means that there is a shift in demand from commercial real estate and that the demand for residential real estate has become higher, according to Forbes.com
According to a survey by realtor.com, it’s been discovered that home buyers want more space in quieter neighbourhoods with enough room for home offices and outdoor recreation all in an affordable package.
This reshuffle in the real estate market has made more people open to the possibilities of home buying.
Forbes.com says that even though Americans are starting to open up to home buying, they still prefer these big, comfortable and affordable houses close to their workplaces. This means that they want an all-in-one package that would ultimately build a business and professional community which is what people need at the moment.
A hot market would include; larger houses, quieter neighbourhoods, a lot of outdoor access and easy proximity to basic amenities that make cities thrive.
Buying a home is a step in the right direction but it can be a daunting task if you do not have the right help.
Making enquiries in the market and working with good real estate agents is still the best way to go. There’s nothing worse than entering into mortgages and buying options that do not suit your budget. So ask the right people the right questions and you’d be glad you did.
The advent of technology has even made it easier for you to get used to calculate your own mortgage payments on your own. We highly recommend Mortgage Calculator to help you calculate those payments so that you can be on your way to owning your own home.
This story has been published as sponsored content on behalf of our paid partner.