The rapid escalation of COVID-19 cases in the Philippines started a tremendous health crisis which caused the implementation of the lockdown of the entire NCR. This mandatory health precaution caused a domino effect on our economy. Business operations are affected or even postponed. The commercial impact and the stock market crash is being felt globally. Some experts even argue that this crisis will initiate a full-blown downturn that will last for months and will take years to recover from.
With the country being in a sudden and painful pause, how will this affect the real-estate market? Will the housing market greatly suffer?
How COVID-19 Is Affecting The Real Estate Industry
This crisis is forcing changes to the real estate industry. Since people are advised to stay inside their homes, there is a fear of the decreasing number of clients and buyers. People selling their property will be reluctant to the idea of letting people look into their houses to touch things for the possibility of virus transmission.
Are we potentially seeing a housing market meltdown here? What are the factors affected in the housing market?
Since real estate transactions usually require in-person contact between the realtor and the client, this means that even the basic process of buying and selling a property will be affected. Open houses can’t be held due to the social distancing policy. Buying and selling houses can’t be done in the traditional way anymore.
This is why real estate agents suggest “virtual viewing” . Potential buyers can look into a property through their devices. Open houses can be done by live streams, where interested buyers can comment and send their feedback on time as well.
Technology is indeed a great help but realtors are even adjusting by only conducting virtual tours on properties that are vacant and not accommodated by the sellers.
This is no doubt a great adjustment for both buyers and sellers. It is less typical for clients to invest in a property that they have not seen and inspected yet- physically speaking.
Lack of Demand
The lockdown and social distancing resulted in a lack of demand in real estate properties. The number of buyers and sellers are decreasing and that’s because of job insecurity. Thousands of Filipinos are being forced out of work, and that is putting real estate plans on hold.
The Future Of Housing Market
The virus and the mandatory healthy precaution order to stay at home have diminished the number of transactions. Appraisers and inspectors struggle to gain enough access to homes to personally inspect it. The fear of facing a great recession is being talked about.
Now, we know that the growing concerns over COVID-19 will most likely make sellers choose to hold off putting their homes on the market, but those who cannot wait will list now and show their homes virtually. These adjustments seem alarming to the industry, experts say there is still a glimmer of hope to look forward to.
Once the order of enhanced quarantine lockdown is lifted, one thing is for sure, real- estate industry will still be around. The real question we should prepare for is how are we going to face all these adjustments? How will the real-estate companies adapt to the changes? And how will the industry stand during these trying times?
No one was prepared for this pandemic but the best thing to do right now is think of solutions for the current problems rather than fearing the future so much that no issues will be solved.
Contact The Most Trusted Real Estate Agents in Metro Manila
Now that the country is facing a sudden change that caught us off guard. Presello understands your fear in investing and selling a property. That’s why we are more motivated to help and assist you now more than ever.
We don’t know how long this crisis will last but one thing is for sure, we are preparing for whatever this situation will give.
Our 15 years of experience in marketing, sales strategy, and real estate industry will not fail to give the most honest and competent service even in this difficult time. Presello’s story is one that aims to bring growth to our clients, we believe with our combined work ethic we can help empower homeowners by giving them the best service when it comes to real estate.