April 7, 2020
This week is the first installment of stories I’ve compiled centered around the impact COVID-19 is having on the real estate market as well as our industry. While it is too early to tell what will happen, there are several interesting ideas and some persuasive statistics available although the situation is just starting to unfold.
- This article from Yahoo Finance discusses how COVID-19 is impacting New York City luxury market which was already struggling. The high end market in many parts of New Jersey has also been stagnant recently, could the virus impact it in a similar way?
- This optimistic piece from Fox Business predicts a real estate boom after the pandemic has been brought under better control. The author’s idea is that buyers will have all of this extra time to look at listings online while they are staying at home, and they’ll be ready to buy as soon as it is safe for them to physically tour a property.
- A segment on CNBC delves into the challenges facing commercial real estate. CBRE’s head of research is interviewed and outlines some of the concerns facing landlords and some of the programs put into place to protect them. He discussed how different asset classes will be impacted differently, but they will all be impacted.
- This article Architectural Digest discusses recent statistics which may shed light on what to expect from the residential real estate market. These include the number of listings on Realtor.com being down 34% year over year and the number of mortgage applications being down as well.
- For a local perspective, the Star Ledger interviewed local realtors about some of the creative ways they are trying to keep their businesses moving. Some of these items including “drive through closings” and virtual showings. Remember, realtors are now permitted to have one-on-one showings in New Jersey, but open houses are prohibited. They also discussed some of the challenges they are facing in terms of getting to the closing table with municipal buildings being closed, etc.
- A story featured on HousingWire points to data compiled by ATTOM Data Solutions which indicated that properties in 14 of the 21 counties in New Jersey could be most vulnerable to the impacts of COVID-19.
- Forbes detailed how Real Estate is an Essential Business since housing is 14.6% of GDP in the United States. Here again, some of the creative ways professionals are trying to work with stay-at-home orders and social distancing are outlined.
Please check back here again next week for more stories discussing how the Coronavirus is impacting the real estate industry and the market. Until then, be safe and healthy!