It is no longer news that several activities have been halted and transactions reduced since the COVID-19 pandemic started in the first quarter of the year. Governments of different countries have, in a bid to reduce the spread of infection, have put up certain restrictive rules to movement as well as the conduction of businesses, except essential businesses.
The real estate industry is among the few niches that are still allowed to operate even during the lockdown period. However, even with the allowance of operation, it is evident that the spread of the pandemic is taking a great effect on the real estate sector.
Most individuals stay at home all day long, and those who are working are now devising different methods to work from home. This implies a lesser number of people interested in buying and selling houses and properties, hence reducing the trading statistics in the real estate market when compared to the previous year.
However, comparing the statistics of property sales in some regions over the last few months, the record has it that some counties have been enjoying higher returns in the real estate sector. For instance, according to a report from the California Association of Realtors, sales of existing homes went down by 25.6% between March and April and 30% when compared with the previous year. However, Siskiyou County, for instance, experienced a spike in house sale that is as high as 35%. Also, Shasta County experienced a 5% increase in sales. Some other counties were flat during this pandemic month but increased when compared to their sales in previous years.
From the statistics above, we can draw the fact that it is likely most working families are now beginning to prioritize the quality of life over other things. This is leading to the likely urban flight and likely rural revival, as evident in the counties experiencing increased sales.
This means that sales and leasing of houses during this period is favoring the rural commodities over the large metropolitan areas. Therefore, in the short term, real estate agents in rural and suburban areas might be enjoying more gains than those in the large counties and cities.
With this in mind, we should also consider job locations and buildings. Most of the big job for working families are located in large metropolitan areas. This means that the working class might be having a commute of an hour or two when going to work. This might be a big issue for those who have to get to their places of work early and arrive back home later.
So, if we are to consider the pointed elaborated on above, real estate business by favor rural and suburban dwellers more during the period of the pandemic, but in the long run, the metropolitan real estate agents might still be taking the leading role in the business. Hence, property survival at this period is dependent on the buyer and the seller as well as how urgent the need for the property will be, as no one can say for sure how long the pandemic will stand.