Three months after the nation went in a COVID-induced lockdown, businesses everywhere are facing new norms. Like most industries, the real estate sector is experiencing significant change amidst a wave of new trends.
Virtual Home Tours
In light of restrictions put in place by the CDC, open houses and in-person home tours came to a temporary halt. Savvy real estate agents and sellers investing in 3D, 360-tours are reaping the benefits. Buyers are getting more comfortable with making an offer sight unseen and sellers limit the risk of exposure to COVID-19. FaceTime, Zoom, and WhatsApp have given sellers a platform for access into their property, beyond static imagery. Buyers can opt for a one-to-one virtual tour, which like private showings, enables the ability to ask specific questions.
Remote Closings
Although remote closings are not a new phenomenon in all states, they are in much of the country. In 2019, only 18 states allowed online notarization, but now nearly all states allow buyer and seller’s identities to be verified by a notary through video links, with documents being signed electronically.
Contactless Inspections
Some lenders will permit drive-by appraisals with sellers supplying their own photography. In order to limit contamination, gloved and masked appraisers can inspect a property in person without any physical contact with the homeowner.
Buyer Purchasing Power
Record low mortgage rates are predicted to remain for the foreseeable future. Despite limited supply in the single-family home market, buyers are not prepared to pay above the odds. An increase in foreclosures across the country could be on the horizon, as furloughs, layoffs and decreased wages take their toll on borrowers. Lenders are seeing an increase in first time buyers, driven in part by millennials who are opting to buy versus rent for added security.
Decline in Urbanization
Metro areas have lost their appeal with potential buyers looking to suburban and rural locales as alternatives. Homeowners want more outdoor access and minimized contact with neighbors. Buyers are seeing the value in open space versus citified amenities. Technology has made the location neutral concept a reality for many.
Detached Properties Versus Apartments
There has been a notable shift in buyer interest away from smaller living spaces. The move towards working from home and home schooling are also driving the new trend.
