How the real estate market has changed in Texas during COVID-19
The greatest impact of COVID-19 is undoubtedly on humans. The long-term trend toward a higher density of life and more space to work together potentially increases the risk of infection. Protocols must be developed to mitigate the effects of the epidemic. COVID-19 has had virtually no effect on home buyers in Houston, so they are ready to buy your home for cash at any time.
The impact of COVID-19 on the real estate market
The residential sector, especially multifamily apartments, tends to be more resilient, benefiting from steady rental flows and the ability to actively modify rental rates to avoid vacant space. Demand is also relatively resilient to external shocks. Another feature of the past year is the speed of decision-making. In the days before COVID-19, buyers could choose their option and prepare for a deal for months. The crisis, on the other hand, pushed for decisiveness: the time to make a decision was reduced by several times.
Another fundamental change in the market is the redistribution of shares in its segments. The volume of demanded commercial real estate has shrunk considerably. And the recovery will not be fast, which means that we are entering a new reality where there will be less need for stores, hotels, offices. But demand for homes will only increase.
Real estate prices in Texas
The main requirement of buyers in the real estate market is safety. And although most of the most careful study of the documents, it does not become a panacea. It seems that the real estate market is working properly with one of Murphy’s laws: if something bad can happen, it is bound to happen. So the main rule of buying – do not to trust anyone and double-check everything.
Carefully analyzing the development of the situation in the real estate markets of the countries that were first affected by the pandemic, we can draw certain conclusions:
- Immediate fall in sales of real estate wherever the quarantine was imposed.
- After the removal of the quarantine, the real estate market as quickly recovered in prices and volumes due to the pent-up demand and increased interest of investors.
- The real estate market won’t fall and won’t stop: people may give up a trip or a visit to a restaurant, but they will buy a home; there will definitely be an increase in demand for mixed-use complexes and storage space for e-commerce.
What’s being prioritized in Texas
According to the survey, the five most important factors by which housing is rated as livable in Texas include proximity to green space and local shopping, affordability, and proximity to work. Some considered the most important factor as being close to schools. Interestingly, for the first time in 10 years, there has been a resurgence of strong demand for out-of-town properties. Lockdown shifted the focus from the need for housing to the cities, because those who had the opportunity to quarantine in the countryside got a big advantage in quality of life.
COVID-19 changed the consumer behavior of the vast majority of people toward more responsible consumption rather than wastefulness. This will lead to a habit of saving for more expensive purchases, particularly real estate.
Customers are also looking at the square footage of the home they wanted to purchase in quarantine. Now give preference to more square footage, an extra room – for a spacious living room, or an office. And the presence of a balcony, a terrace, or an adjacent area is now not only an advantage but also a need and request of the client.
The buyer is very cautious when buying a home, and the information pressure of the crisis has made him even more sensitive. Customers who buy real estate to save their savings are worried about the liquidity of those square meters. For those who buy a home for the family and not for later rent or resale, it is probably a one-time purchase for life, and therefore, the mistake of choosing a home will be very painful.
Conclusion
Last year, the market was heavily influenced by the pandemic crisis. And if its beginning was characterized by some panic among potential investors and reducing their activity, then in the middle of the year – as soon as the restrictions were lifted – Realtors stated a super-high influx of buyers. The deferred demand has made itself felt.
As for the near future, pessimistic experts believe that the low activity of buyers, reduced demand, developer problems, and the lack of mortgage loans will not let housing prices grow. At the same time, market optimists hope for a serious pent-up demand caused by the pandemic and believe that this year real estate will feel quite confident.
