Undoubtedly, the real estate market is at a bit of standstill today due to the Coronavirus (Covid-19) pandemic. However, This isn’t the 2008 housing crash. While it is true that the Covid-19 pandemic is a blow to the global economy, and the Atlanta real estate market will definitely be impacted, the market will not be crushed. As we work through this crisis, nationally and locally, the primary concerns are how bad will it get, how long will it last and what will the Atlanta Real Estate Market look like going forward?
In only four weeks, we have watched the US economy almost completely shut down. To prevent financial chaos in the markets, the Federal government stepped in immediately and pumped 6 TRILLION DOLLARS into the national economy between buybacks and relief packages. Every element of the life we were leading a month earlier has altered. However, both the virus and financial chaos will be fixed
The Impact of the Covid-19 pandemic on the Atlanta Real Estate Market
Sellers, buyers, and real estate investors are truly dazed. Notably, this Covid-19 will test numerous current business models that were flourishing in the Atlanta housing market before corona. The most glaring segment is “IBuyers– immediate offer” home buyers like Zillow, Opendoor, Offerpad, and more. These firms have suspended operations during this time, as they do not appear prepared to operate in anything other than a robust economy.
What Should you Expect in the Atlanta Real Estate Market after the Covid-19 Pandemic?
The real estate market performs like every other market, in cycles. The financial conditions drive real estate, and to a certain extent, real estate drives a significant portion of the economy; the two are intricately linked. For the foreseeable future, interest rates are expected to remain low, probably under 4%. This means that it will be cheaper to borrow money for housing, at least for the foreseeable future.
Selling a Home in Atlanta Real Estate after Covid-19
As mentioned earlier, this isn’t the housing crash of 2008. Lenders and banks are financially stable, especially since the Fed got involved almost immediately when the COVID-19 pandemic first hit the US. Online marketing and research have remarkably increased. Buyers are flocking to real estate websites like never before. Post Covid-19, house sellers should be concerned with dropping their prices too much, as there will still be a strong demand for housing.
Purchasing a Home in Atlanta after Covid-19
Similar to sellers, buyers need to understand trends in their market area. When it comes to deals, we do not expect anything like the 2008 Housing Crash. Buyers who were looking to purchase a $500,000 home for $50,000 will be disappointed. This isn’t going to happen as a full-price meltdown is unlikely amid the COVID-19 pandemic. In any event, we will likely have buyers controlling the majority of markets for the next couple of months. Post Covid-19, home buyers in the Atlanta real estate market should have clear and specified objectives for the location, cost, and type of home they want and have preapproval and proof of funds and be ready to move fast if they run across a property they want.
Overall, the Covid-19 pandemic will affect the Atlanta real estate market. However, the real estate market functions in cycles, just like every other industry. As such, the market will bounce back eventually.