New York, NY is the hell of a town — and in the post-COVID world, homebuyers sometimes consider it a bargain hell.
Since COVID-19 emerged as a major concern First few months of 2020The pandemic has disrupted the country’s housing market in many ways.Initially, health concerns helped digitize the home buying process, and some people said Buy a sight of an invisible house Apart from virtual tours.
Households across the country are moving to working from home for white-collar workers You can rethink where they lived.. This caused a surge in interest in the holiday town, as wealthy Americans chose to buy a villa to wait for a pandemic.
Meanwhile, the prospect of living nearby for months while waiting for a pandemic, coupled with record low mortgage rates, has forced millennial households to live in major suburban cities across the country.
But now when Americans start receiving First dose of COVID-19 vaccine, The visible pandemic seems to have an end. However, just as the pandemic has spurred a surge in homebuyer demand, returning to normal could drive real estate sales in certain parts of the country. However, not all local housing markets will benefit equally from the end of the COVID era.
Ali Wolf, Chief Economist at Housing Market Research Company Zonda, said: “The market I’m looking at in the vaccine economy is the one that is supercharged solely because of COVID-19.”
Here’s the part of the country where housing market economists can benefit from the end of the pandemic:
Expensive coastal markets like San Francisco and New York will become popular again
Before the pandemic began, some of the country’s most expensive housing markets were already sluggish. In New York, “price has fallen for the third year in a row,” says Nancy Wu, an economist at Zillow.
Subsidiary Street Easy, Told MarketWatch in August..
Even before COVID-19 urged homebuyers and renters to rethink their living arrangements in the name of comfort and affordability, these markets are stagnant simply because they are too high for most people. I did. What’s more, the pandemic has robbed much of the charm of big city life.
“The pandemic has blocked all the reasons people live in the city, whether it’s nightlife, cafes, live music, or sharing information in the office,” Wolff said.
However, these markets can plummet. Falling prices, especially when combined with low mortgage rates, make it a more feasible offer to own in places like Big Apple or San Jose, CA.
“Don’t cancel the city,” Wolf warned. “Places like New York City, Los Angeles, and Miami aren’t dead.”
The new tech hub is attractive to buyers
inside that Rounding up the top markets in 2021, Realtor.com has identified many locations across the country with a fast-growing technology scene (or nearby market). Sacramento, California, for example, won first place because housing in the California capital is cheaper than San Francisco and San Jose. However, within two hours of driving, employees in the technology industry can commute to and from these areas.
The Realtor.com ranking represents a fusion of the currently popular markets in the pandemic with the world’s most popular markets after COVID. Other growing technology hubs on the Realtor.com list include Boise, Idaho, Denver and more more affordable than Silicon Valley.
Daniel Hale, Chief Economist at Realtor.com, said:
“The technology industry will continue to thrive. It may not be 100% remote, but as many people do today, remotework has been tested during this pandemic and will continue to function. Will continue to do. In the near future white-collar work life, “she added. “This will make the technology city work well.”
Small cities in the South and Sunbelt have the potential to thrive in the world of telecommuting
The future of many markets depends on whether working from home is the norm or just a pandemic fluke.
Some employers, Twitter etc.
They suggested that their staff work indefinitely at home. If more companies follow their lead, it’s good news for less populated cities in warm climates, citing Tampa, Florida, Phoenix, Raleigh, and Jacksonville, Florida as examples.
“Pre-pandemic house hunters had to balance affordable housing needs with employment opportunities,” she said. “With the transition to a more flexible working environment, even after the pandemic, a market with affordable housing, a good lifestyle and a favorable climate can be even more attractive to new entrants. . “
These areas are also attracting attention from real estate investors, especially those who buy real estate in states where they do not live.
Darren Bromkist, Vice President of Market Economics for Real Estate Website Auctions, said: com.
These investors were dominant in places such as Memphis, Tennessee and Augusta, Georgia. “Real estate investors at the forefront of the housing market are rushing to local markets in anticipation of migration to these markets,” added Bromkist.
Where the jury is out: Upper Midwest and Rust Belt
Summarized by the National Association of Real Estate Agents Unique list of top 10 markets It is expected to prosper during and after COVID-19. The list included some of the usual suspects, such as Boise and Spokane.
However, some of the other markets are in some of the countries that are not often used as hot real estate locations: Des Moines, Iowa, Indianapolis, Madison, Wisconsin.
“We expect migration from western and coastal cities,” Lawrence Yun, chief economist at the National Association of Realtors, said at a forecast summit earlier this month. “People are divided on which market works.”
In which city the housing boom occurs depends on the diversity of the workforce. The economy of the Midwest and Rust Belt regions remains heavily dependent on sectors such as manufacturing. These industries haven’t necessarily seen the same cataclysms that urban sectors like New York have because of the rise of telecommuting, which means that those places will become more popular following COVID. I will not.
“In the next few years, markets that are likely to suffer are lacking in work diversity and lifestyle,” Wolf insisted. A good example of this is Orlando. The pandemic has largely closed the city’s tourism sector for most of 2020, but the central Florida housing market remains strong.
That’s because, on the surface, there is more employment diversity in that part of the state of Sunshine than many would expect. “For example, people employed on the Space Coast are still working, driving strong home sales in Orlando, especially in the high price range,” Wolff said.
This is the same reason Houston was able to survive the mountains and valleys of the oil market. The oil industry is the main employer there, but the urban workforce is diverse enough to withstand those pressures.
But the Midwest and Rust Belt cities have one big thing. That is cheap.
“In this current environment, low mortgage rates create opportunities, almost whatever is happening in the local economy,” Hale said. “But if mortgage rates start to rise, they are expected to rise as the economy recovers, which could further hurt high-priced markets. Also, many manufacturing industries compare real estate. These markets have the potential to outperform because they are concentrated in affordable areas. “
US real estate market preparing for the post-pandemic boom of 2021
http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D19A8B50AD70%7D&siteid=rss&rss=1 US real estate market preparing for the post-pandemic boom of 2021