If you own property, you might be wondering how the coronavirus is going to impact you in the near future. Well, we can help you there because there are already signs of things to come. For instance, governments have been working to help those who own properties and are in financial difficulty. Interest rates have been frozen and in some cases, greatly reduced which is going to have a tremendous impact on those who are either out of work, furloughed, or seeing reduced profits in their business venture. However, that is the immediate impact of the pandemic. We need to consider the long term implications.
Will Prices Rise Or Fall?
It’s possible and, according to experts, likely that the coronavirus will cause a recession that could hit the economy on a global scale. Indeed, there have been warnings that this could be the worst economic disaster since the great depression. Economists have been keen to point out that the world is in a different place now so even a situation like this won’t hit the same way. However, there could still be severe ramifications. One of the major impacts could be that the housing market will crash which will cause prices to go through the floor.
Who Will Benefit?
People who will benefit are likely to be buyers who should be able to find homes on the market at lower prices than usual. Unfortunately, there are going to be many people who are desperate to sell due to their financial situation. Again, this is going to cause far lower prices than usual. Others may need to sell due to pursuing a job in a new location. With the job market expected to be crowded due to employment rates, a lot of people are going to be searching far and wide for work.
When Should You Sell?
Before the pandemic hit, you might have been in the process of preparing to sell your home. It’s important to realize that this is now no longer an option. Indeed, it’s virtually impossible to sell a home and abide by social distancing. Furthermore, a lot of real estate agents are currently closed. So, there’s no way to market and likely no one on the market buying.
This leaves two choices. You can try and sell as soon as the lockdown lifts, likely at a lower price than your home is worth. You can start by getting pricing estimates. Or, you can wait for the market to recover and it will recover. Experts estimate it will be back on track by early 2021 at the latest. At the very least it should have stabilized by this point.
When Should You Buy?
If you are looking to buy, you should consider looking for a home as soon as the lockdown lifts. Again, there are likely to be some fantastic homes at great prices available and potentially low-interest rates too. It could be a buyer’s dream for the rest of the year.
We hope this helps you understand the key impacts that the coronavirus could have on the property market.