Location is an incredibly important factor for buyers when considering their dream home. People tend to value close proximities to their offices, their children’s school, and to their respective social circles. This ultimately means that less money will be spent on commuting, although Covid-19 may disrupt the entire market altogether.
Due to the current pandemic, homes became more than just the living space for most New Yorkers. Many New Yorker’s were forced to adapt to working from home, or even attending school remotely. When consumers are confined into one small space to conduct all these activities, tangible space becomes an even greater commodity than ever before. The implications of Covid-19 are forcing many consumers to leave big cities to find more space, like what happened during SARS.
In terms of unemployment and the economy, many are concerned about how Covid-19 will impact the real estate market. To predict what the post-pandemic real estate market would look like, we can look at consumer behavior from other countries who have progressed significantly since the rise of Covid-19. China’s real estate market has grown due to pent up demand, which is a strong indicator. Spain saw a 6% increase in new building sales in the last quarter. New York however, has suffered a tremendous blow. The number of closed sales was down 54 percent compared to the same period last year, and the median sales price fell 17.7 percent.
It is difficult to predict how the market would be now, but the next few months will be crucial. With the unseen low interest rate and fallen home prices, smarter investors can see this as an opportunity to buy and hold.
Chaves Perlowitz Luftig LLP is one of the most highly regarded real estate and estate planning firms in New York City. Our team of top-rated real estate attorneys and estate planning lawyers have extensive knowledge, resources, and connections to help you achieve your goals and plan for the future.