Here’s a great article from Kathy Fettke that provides valuable input as to how the Corona Virus Pandemic has affected and shifted the Real Estate Market. Kathy Fettke was one of my students several years ago. She and her husband have built great reputations for themselves. They are true wealth builders who have created their own real estate empire, while teaching others how to do the same. Love them both! Gary Massari
Homebuilders Regaining Confidence
New construction, permits and completions have all declined over the last month amidst the pandemic. New construction on single-family housing dropped over 25 percent between March and April of 2020. Single-family building permits were 24.3 percent lower and home completions dropped 4.9 percent.
However, we’re beginning to see builders regain some of their confidence. Homebuilder confidence has already increased in May and with super low interest rates, there’s been a jump in applications. This is a good sign that people may be looking to get back into the buying market again.
“Over the past week, quarantine restrictions continued to loosen across the country, with most states partially reopening,” says Senior Economist at Realtor.com, George Ratiu.
“In addition to a sobering number of lives lost from the coronavirus, the economic toll from the past two months is staggering. The number of jobs lost just in April rivals the number of jobs created during the past 10 years combined,” he said.
With more and more companies offering extended or permanent work from home options until at least 2021, it’s likely there will be a shift in what buyers and renters are looking for. There is already a demand for more space, outside of crowded and overpriced city-living and this trend is expected to keep picking up speed.
Single-family and multi-family homebuilders should be looking for opportunities to fulfill these changing preferences in homebuyers and renters.