The existing, horrific, pandemic, has been, probably, the worst health crisis, in a century, at least, within this nation. We have already, witnessed, more than double, the number of fatalities, caused by its impacts, than the total American deaths, from the Vietnam War! In so many ways, our way – of – life, has been, impacted, severely, and very few, have been, untouched, by it, in some manner! Although, the public health considerations, are, and should be, the top priority, it would be foolish to ignore, the economic ramifications, stemming from this, in terms of business closings, job losses, huge deficits, the effects of personal finances/ savings, and related matters! One, which will certainly be effected, in immediate terms, as well as short – term, intermediate, and longer – term, is the real estate/ housing and commercial marketplace. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, some of the probabilities, during each of these periods.
1. Immediate: The overall, real estate market, has been affected by, the overall economic ramifications, etc. For several months, especially in those states, which proceeded, in a public health – focused manner, it was nearly impossible, to show a house, because of the health risks. People were affected, as were both large and small companies. In New York, for example, businesses, such as restaurants, offices, etc, may not look, and/ or, operate, the same, for quite, some time! We are currently, in many regions, experiencing, a growth, in the residential components, with lots of interest, and sales. Estimates are, perhaps, 25%, or more, of all restaurants, will not reopen, and/ or, will go out of business, in a short – period. Many larger businesses have changed their methodology, and discovered, they might be able to reduce their overall, overhead, by continuing to have many of their employees, telecommute. rather than working, in the office. If that change, remains the pattern, we can probably expect, an incredible impact on commercial office space!
2. Short – term: After the immediate frenzy, what might happen, next! The initial buyers, were probably, those, who, were financially, least affected, and, after, this activity, what might occur? If many were forced, to dig – into, their financial reserves, etc, how might this, impact credit ratings, down – payments, etc? If that occurs, what will that do, to, Supply and Demand?
3. Intermediate: Hopefully, the worst of this pandemic, in terms of health risks, and economic ones, will be over, sometime, sooner, rather than later! Will we see, survivors, of this period, respond, in a similar manner, to those, who experienced, the Depression, which is, to proceed, with an excess of caution, caused by fears, generated from the experience? If, so, wouldn’t that have a significant impact, on all components, of real estate? We have already, seen, stores closing, and/ or, down – sizing (both large and small ones)!
4. Longer – term: Over the longer – term, chances are, some regions, will rebound, and respond better, more fully, and completely, than others.
It is wise to realize, recognize, and understand, some of these potential ramifications, and to try to be, as prepared, as possible! Will you be ready?
Source by Richard Brody