The housing market has gone through a number of changes from 2020 when the pandemic struck till now. Like many economic sectors, real estate suffered an impact from Covid-19. The value of houses dropped because people were not buying as much as they used to and because of the stay at home regulations, houses in commercial areas were not as in demand as they used to be.
Even though the housing market has somewhat recovered, there are some things that have become the new normal and that’s why we talked to Winston Deloney, a pro in real estate investing and the interview went like this;
What were things like before COVID?
The real estate industry was a major source of investment for a lot of people. Houses in industrial areas and school areas were almost guaranteed to bring about returns. Buyers and sellers could meet for house viewing and this boosted sales.
How did COVID change the housing market?
During the pandemic, health concerns led to the decline of house orders and sellers willing to sell their homes because they didn’t want to stand the risk of getting Covid. Despite the decline in demand and sales, home sales began to rally but by that time, a lot of people became unemployed and those that were uncertain about their economic standing.
Not to mention, with the housing crisis of 2007-09 still fresh in people’s minds, many were trying not to fall into a situation where they could not pay off their mortgage. Still, because of the pandemic, people who could afford a home moved to the suburbs since their homes started to double as offices and schools.
What is your experience with the COVID system and what do you like about it?
The Covid system introduced a lot of new things into the market. Virtual house viewing was one of them. It’s a system where house buyers can view houses they want to purchase on their phone or computer from the comfort of their homes. This new trend made it easy for people who want to buy a home to do so without risking their health.
Like I said, homes in the suburbs also became popular and some companies even tried to resettle their workers from company areas to other places by giving them incentives.
What are the biggest challenges that you faced in the housing market?
There are a few challenges when it comes to real estate investing. The first one has to be getting homes that are likely to be profitable.
As easy as it sounds to invest in homes. Sometimes, they don’t really pan out and you just have to sell the house for the amount you bought if you’re lucky or less.
In what ways did COVID change the housing market?
I’ve mentioned this before. Virtual house viewing and movement to the suburbs because of the stay-at-home order ranks the highest. Exploring the art of real estate investing is complex but worth it. It can be a valuable investment that can compete with, and often outpace, the returns of the stock market.