This post was most recently updated on May 17th, 2023
The real estate market has had a tumultuous year. From the uncertainty of the pandemic to the rise of remote working, it’s been a roller coaster ride for both buyers and sellers. With such a volatile market, it’s important to understand what’s happening and how to make smart decisions if you’re looking to buy or sell the property.
The Impact of COVID-19 on Real Estate
As with almost everything else in 2020, the coronavirus pandemic has affected real estate markets worldwide. In many areas, home sales have dropped due to less demand from buyers who are unable or unwilling to move during these uncertain times. At the same time, some areas have seen an increase in demand due to people seeking out more spacious living quarters or wanting to take advantage of low-interest rates.
This volatility can be seen in other areas, too—vacation homes have become much more popular as people look for alternatives to international travel. In contrast, commercial real estate has taken a hit due to businesses shutting down or downsizing. So while there are still opportunities for buyers and sellers alike, it pays dividends to stay informed and ensure that any decisions you make are well thought out and carefully considered.
The Rise of Remote Working
Another factor impacting the real estate market is the rise of remote working. With so many companies now allowing their employees to work from home indefinitely, there is less need for office space in big cities like New York and London—which could mean lower prices for those looking to purchase commercial real estate in these areas. At the same time, people are also leaving cities in search of more affordable housing options outside metropolitan areas—further driving down prices in some places while pushing them up elsewhere.
This year has been a turbulent year for the real estate market—one that will continue into the next year as we try to make sense of all that has happened this past year. But despite all of this uncertainty, there is still potential for both buyers and sellers if they know where and how to look. By carefully researching your options ahead of time and consulting with professionals such as a real estate lawyer who specializes in real estate law and finance, you can ensure that whatever decisions you make will be sound ones when it comes time to sign on the dotted line. Good luck!