It is no longer news that the pandemic is causing many troubles for several sectors of the economy; everyone is looking to put measures in place to keep the sector running while the lockdown lasts. The real estate market is one that has been experiencing a dip since the start of the pandemic. There is a significant reduction in the number of houses and properties being listed, and the number of interested buyers is reducing by the day.
According to recent statistics in the US real estate market, there was a fall in 16.3% in home sales this year compared with 2019. In March, property sales also reduced by 20.8%, with more dropping occurring in the south than in the North. The south showed a reduction of about 19.5%, while the northeast recorded a 14.5% reduction.
The Midwest showed a reduction of up to 20% over a month and 12.4% compared with the previous year. Home sales in the west fell by up to 21.5% annually, with a weekly drop of about 26%.
The stay-at-home order has caused several people to become unemployed, hence finding it difficult to pay their rents. An estimated number of about 30 million people have lost their jobs during this period. With the housing market representing about 18% of the total economy, the unemployment rate affects the industry and the country’s economy at large.
From recent trends, the sales and listings during the spring have always favored agents and sellers. This is because several sellers choose to list their houses for sale around this period because of the high demand. With this in mind, economists, investors, and market researchers are still hopeful that there can be a turnaround in the economy. Although, some other ones are still predicting a property slump until the lockdown is over.
Due to the loss of jobs, several renters find it difficult to keep up with their mortgage payments. Some landlords are also looking into implementing new strategies for their tenants, while others allow their clients to default payment until they can make payments.
Several American Banks are also making new plans to help tenants get through this period without having a negative effect on their credit score. However, some young residents are finding it hard to cope with this season. For instance, Airbnb superhosts, who have several rental properties and rely on rent collection for survival, find it difficult to cope around this time. Even though the tenants are making delayed payments or not even paying at all, they still have to pay for property maintenance and cleaning services of their properties to keep it in shape.
Since the pandemic started, Airbnb has lost up to $1.5 billion in bookings. Although they are leveraging their venture capital investors to reduce this debt, the Superhosts, making up to one-third of Airbnb hosts, are still finding it difficult because of the difficulty involved in taking small business loans.LINK https://news.bitcoin.com/us-real-estate-market-shudders-experts-predict-40-lower-sales-march-contracts-dip-by-21/