How Will the COVID Vaccine Impact the Real Estate Industry?

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2020 was a rough year for millions of Americans due to unemployment, economic uncertainty, eviction and foreclosure moratoriums expiring. With that said, things could start looking up because COVID-19 vaccines have been released and have a 95% efficacy rate. Businesses and schools may start to reopen, people will feel safer to go out and about, and there may even be more people entering the market.

So, what kind changes will we see from the COVID-19 vaccine and the real estate market in 2021? 

Metro area may see an increase in demand

One of the ways some companies have retained their workforce was by allowing those who could work from home to do so. Since people didn’t have to drive to the office everyday, some considered relocating to a less dense area to avoid the potential of getting sick.

However, the COVID vaccine could mean that businesses will reopen and the economy will soon start to recover. And those who left the big city in favor of the suburbs may rethink their decision and move back. Plus, there are some cities where the rent has decreased because of the pandemic and that may be another alluring tidbit to draw people back into the city.

Home sales will increase exponentially

Although many industries have been hit hard by the pandemic, the real estate industry proved just how resilient it is. There’s a lot of qualified buyers out there who are taking advantage of the current low mortgage rate. Home sales are expected to increase over the next year, which is good news for those who are thinking about selling amid COVID-19, as it’s a seller’s market in 92% of markets around the country. 

Rent and home prices will increase

Since it’s a seller’s market, it’s understandable that sellers would increase their asking price because they know the market is hot and inventory is low. It’s even expected that buyers would even consider offering more than asking if they really love the property. 

Landlords, on the other hand, may have felt the strain if tenants missed rent payments during the pandemic. It’s quite possible that landlords may decide to increase rent once the extended eviction moratorium ends on March 31st to recoup some of that loss.

Mortgage interest rates increase as economy improves

Buyers may be taking advantage of low interest rates now, but those rates aren’t going to be around forever. As vaccines are distributed and the rate of infection declines, the economy will start to recover. And, as the economy recovers, interest rates will increase to improve economic growth. The good news is that the Federal Reserve doesn’t plan to increase rates anytime soon, so we can continue to benefit from these low rates. 

Also, homeowners who considered refinancing may want to do so now while rates are low. They could stand to save a good amount of money, especially if their initial rate was higher when they first began the mortgage!

If there’s one thing this pandemic has taught us is that the real estate industry is tough. There will always be a need for housing and real estate agents will always be prepared for whatever is thrown at them. As more vaccines make their way throughout the country, things can only get better. 

If you’re thinking about entering the market any time soon, you can always reach out to your local real estate agency and ask for advice and tips from top agents to help navigate the market. They’ll be your best friend!

About Author

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LaDonna Dennis

LaDonna Dennis is the founder and creator of Mom Blog Society. She wears many hats. She is a Homemaker*Blogger*Crafter*Reader*Pinner*Friend*Animal Lover* Former writer of Frost Illustrated and, Cancer...SURVIVOR! LaDonna is happily married to the love of her life, the mother of 3 grown children and "Grams" to 3 grandchildren. She adores animals and has four furbabies: Makia ( a German Shepherd, whose mission in life is to be her attached to her hip) and Hachie, (an OCD Alaskan Malamute, and Akia (An Alaskan Malamute) who is just sweet as can be. And Sassy, a four-month-old German Shepherd who has quickly stolen her heart and become the most precious fur baby of all times. Aside from the humans in her life, LaDonna's fur babies are her world.

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Tara Pittman
14 days ago

Houses are selling like crazy here. They get sold within days of a listing

Brianne
13 days ago

This was a really interesting read. I’ve never thought about this particular aspect of COVID before.

Kathy
Kathy
13 days ago

Houses have been selling so fast here. I was just curious to look one day and so many were pending. I had never seen that happen before.

Ryan Escat
Ryan Escat
13 days ago

As for here in my area, nothing changed with the prices at all. When it comes to selling, I’m not aware it if increased or decreased since pandemic.. But thanks for sharing. So great to hear about it.

Gervin Khan
Gervin Khan
13 days ago

This pandemic really affect every industry in the world especially the real estate side. We definitely need this kind of article to help us decide to pursue this market.

Wanda Lopez
13 days ago

This is a great article. I have seen many houses sell really fast in my area, just like others have been commenting.

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