October 19, 2020

Five things about a second wave of the coronavirus in housing


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When the real estate companies of our country were beginning to reorganize their businesses and return to normal after the end of the state of alarm, the threat of a second wave of coronavirus. The expansion of Covid-19 seems unstoppable, and although the total confinement seems to be ruled out, many potential buyers are delaying their decision, waiting for the situation to return to its course. From piso.com we try to clear up the unknowns about the uncertainty that weighs on the house:

1. Limited effect. Some promoters point out that during the summer the closing of operations has proceeded normally. The solidity of the residential sector is reflected in the data. After months of intense falls, the rhythm is picking up, albeit more slowly. The house is configured as a stable asset against other types of investments.

2. Indicators down. Other experts are not so optimistic. In fact, they portend sharp falls in house prices. In this sense, there are companies that believe that pre-pandemic levels will not be reached again until the first or second quarter of 2021. The long-awaited recovery in V will be rather in U and even in W for some specialists.

3. New vs. used. One of the keys that stands out is that the impact of the coronavirus will be different depending on whether it is new or second-hand work. The new promotions continue to work thanks to the fact that off-plan marketing is carried out with a minimum of two years in sight and is supported by very striking visual tools. However, the used house is not only more immediate, but the technological aspect is not as developed with regard to virtual visits.

4. Fierce unemployment. As restrictions on mobility or assembly are imposed on the population, reductions in capacity are also imposed on the hotel business and culture. All these measures also negatively influence hotels, shops and other businesses that have seen their income reduced, which has an impact on consumption and unemployment. Without job stability, the demand for housing breaks down.

5. Investor on the prowl. In front of the citizen who loses his purchasing power, there is the one who has not seen his income from work affected. Precisely, this buyer profile could be a fundamental part of the market recovery. The key is for prices to stabilize as soon as possible, since we are talking about people who are waiting for further adjustments in order to find the perfect opportunity.

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