The coronavirus looks like it’s finally getting under control, as vaccine rollouts continue to sweep the nation. As more communities administer the vaccine, with its 95% efficacy rate, it’s likely that our lives will finally start to feel like the pre-pandemic days. Thank goodness!
One of the ways we’ll continue to feel the effects of the pandemic is in real estate – namely that of large cities. The promise of remote work becoming a permanent possibility is likely to have an effect on where people will want to live. We have some insights from top agents that’ll highlight some of the biggest changes that could happen to our beloved metropolitan cities.
Decreased demand
Businesses have changed how their employees can do their jobs and those who have been able to work from home are hopeful that it’ll be the new way of life. After all, it saves the employer money on office space and utilities, but it also saves the employee travel time and gas. The need to live in the middle of a huge city may not be a concern people will take into consideration when looking for a new home. They could choose to look for homes on the outskirts of the city or even in a nearby suburban neighborhood.
Buyers will become more competitive
The housing inventory is low in many (if not all) markets across the country and real estate agents are afraid that inventory won’t replenish as quickly as needed to meet demand. The low inventory means that buyers are going to pull out all the stops to get their offers accepted on a property. They’re submitting offers at or above asking price with little to no contingencies. Some buyers will even offer cash!
Note: If you’re a seller looking for a quick home sale, then you’re in a great position to make a sizable profit if your home has equity.
Cost of housing will soar
People that are putting their homes on the market might be tempted to raise their asking price simply because they know it’s a strong sellers market and buyers are… desperate. However, since buyers are getting so competitive, you can use a home value estimator to come up with a fair price and trust that buyers will increase their offered price. Heck, some markets are even seeing heated bidding wars where prices are increasing by $100,000+ over asking!
Remote workers relocate
Remote work not only plays a role in people deciding to move to the city, it also plays a role in people looking to relocate away from the city. City life can be pretty darn expensive and now that there’s a chance to relocate somewhere more affordable without worrying about finding work? It sounds like a dream come true! Suburban life is appealing because you can get a house with more space for your money, you can get a larger property and enjoy the outdoors.
Of course it’s worth noting that once COVID restrictions are fully lifted and businesses reopen, it’s very possible that there could be an influx of buyers moving back to the city. The interest in living in the city is understandable because there’s always something to do, places to go, and new people to meet. The truth of the matter is, it’s hard to truly predict the future of the big city housing market.
One thing is for certain though – there will always be a demand for housing, either to buy or rent. If you don’t want to sell your house right now, you could consider using it as a rental property or even an AirBnB. There’s a lot of options available and a real estate agent can walk you through them!