CORONA VIRIUS AND ITS EEFFECTS ON SOUTH FLORIDA REAL ESTATE MARKET!

HOW CORONA VIRUS WOULD AFFECT THE SOUTH Florida real estate market is a big mystery. So far, the real estate market has been moving good. Even though few deals have been cancelled but most of the transaction have been closed. However certainly a lot of people and businesses will have a hard time paying for rent, mortgages and association fees because of all these Quarantine’s affects. In south Florida most renters spend over 40 percent of their income for their rent, so people who have lost their job or their hours have been cut down , they will not have enough money to pay for life necessity such as food and medical care, let alone pay for rent. The only good news is if they can’t pay the rent, they cannot be evicted since all the court is closed and we are all quarantined. As for homeowners, about 70% of them in south Florida have mortgages on their house which now they can apply for loan deferment through their lenders.

Since the interest rate is really low, it is a great time to shop for lower interest rate refinance. 30 year mortgage rate is never all time low.

To purchase a new house, even though some sellers took their property out of market in order to practice social distancing, there are still ways to check out a property and follow the rules and safety. For example if the house is vacant or owners agree to leave the house at the time of showing. Also the technologies been a great help for example virtual showing or virtual open house been a big hit.  Personally I don’t think the south Florida market will have another recession because of covid-19  because there is a shortage of single family house in south Florida. Also Florida being one of the few states with balanced budget I think it could easily bounce back and hopefully all goes back to normal.

One of the advantages for sellers is that they would know the buyers who prospect the property are serious because before a lot of people who came for showing appointments it was neighbors who came to check out the neighborhood, bored people , etc. but now whoever shows up during the corona virus must be serious. Second since people stayed in their current residence longer they now have a better understanding of what they are actually looking for.

corona

Ggvvg

Novel COVID-19 (Coronavirus) and Florida Real Estate Market

There are many factors that can affect economy and eventually have negative or positive impact on sub-sectors of economy. Real estate is part of the economy that generally shows first signs of economy changes. That’s why one of the most important factors for economy’s evaluation is the real estate market condition.   

Recently pandemic of novel COVID-19 known as Corona virus creating a global crisis and almost cause the whole word to shout down. 200 countries got involve and over 1.2 million people got infection so far and over 200,000 lost their life. Due to the high ability of the transfer of the virus between human most of the countries went through quarantine and lots of companies and business were forced to close and lots of jobs already were lost.  This pandemic is having a negative impact on all industries including real estate industry even though the interest rate was bring down almost to zero to help real estate crashes.  It has effected brokerage operations, listing and transaction. It is hard to conduct business as a real estate agent because that means you cannot go to listing appointment, walkthrough, showing and etc. 

The paramedic of novel COVID-19 cause some people lose their job and practically are out of market of buying new properties also since the market is down there are lots of seller will pause at the moment to see what will happen next. Although I do believe that the crash might have biggest impact on condominium but it won’t affect single family houses which are very short inventory of them in south Florida real estate market. Also commercial property will get negative impact from this market crash. I think like 2008 if the crisis continue for long time and we faced such economy crash in 2007and 2008 the inventory of short sales and foreclosed property will increase and it would be an opportunity for investors waiting for hunting.  

These pandemic may discourage some of your client or potential client from buying or selling, as a real state professional you should still keep up and touch bases with them to make sure in case they decide after all they want to go forward with their purchase or sell they would choose you because to made a working relationship with them.

Since your activity in real estate is limited during these crisis there are some tools that you may use for example use online virtual tour instead of showing the property or use , online meeting  for your listing appoint and use online notaries as it was mentioned in these article for your closing.

 https://sunshinestaterealtor.blogspot.com/2020/04/online-notaries-come-to-rescue-on.html

Although doing all these differently might makes it harder it is not impossible to conduct business.

Even though it seems that economy is bad at the moment, I’m hoping that would change as soon as the corona virus pandemic is over. A lot of people have been stuck at home, as soon they are allowed to go out the shopping mall and restaurant will be filled with all customers eager to shop, eat and be outside. The domestic travel will boom because all these people to have to cancel because of the virus and the people who have to go somewhere because they were quarantined for too long.

Florida is one of the dream vacation distention in the world which would help with season rental or vacation house purchases .also Florida is a state with no federal income tax and balanced budget which makes a lot of people want to move here.  Since people were quarantined in their house for long time they might know what to change their house since they found a flaw with their house or maybe they now know what the need and want.

Florida is also a destination for a lot of rich people who can hope on their private jet to come to buy their next luxury property as their water front property on the beautiful Atlantic oceans. So we can be pretty being optimistic about the real estate market in south Florida. 

Americans Are Still Optimistic About Buying

Americans Are Still Optimistic About Buying: Home buyer sentiment remains resilient despite the COVID-19 global pandemic, new survey results suggest.

Online Notaries Come to the Rescue on Transactions

Online Notaries Come to the Rescue on Transactions: One electronic notary predicts processing $100 billion in transactions this year—up from $10 billion last year.