A lot of industries have been affected by the global pandemic. Restaurants, retail, and other industries have left their doors closed and workers unemployed. And this is especially the case in South Florida, with stay-at-home ordered having been issued recently. But what about the real estate industry, the important economic engine? Everyone wants to know how Miami real estate industry is dealing with coronavirus.
While people still have reasons for selling their Florida properties, are there enough reasons for buying these properties? Experts in the Miami market still report listings and sales of condos and homes, but is there a change in the market? There is, even though we are still to find out how Miami real estate industry is dealing with coronavirus when we see the full impact. And with all of the uncertainty, we still don’t know long all of this will take.
Impact of coronavirus on Miami real estate industry
A survey conducted mid-March by the National Association of Realters enabled us to see a big decrease in interest from buyers, compared to a few days ago. However, in the areas with cases of the virus, the decrease in interest is more than 40 percent, comparing to a previous period. Also, there were sellers changing their mind about selling their home. Actually, more than 20 percent of sellers in the area affected by the virus, decided not to sell their home.
Somethings did become more difficult, or impossible, like finding a roommate in Miami, amid the global crisis. Nonetheless, rentals don’t seem to be affected as much, comparing to the period of one month ago. While it seems like there’s no significant change in the number of active rentals, we are yet to find out the real impact in the next couple of months.
How Miami real estate industry is dealing with coronavirus
After the Mayor’s order to shut down the non-essential business, the industry experts had to change the rules of the game. For starters, a lot of companies will do their work remotely. However, the problem was that open houses, which were important for selling the properties, aren’t the option anymore. The biggest problem was with selling apartments, as only essential people could go inside the buildings. However, with homes, the real estate companies were more successful.
Before barring the open-houses, up to four people were able to be scheduled for a certain appointment. But, now that there are no open houses, virtual tours and video calls are a new thing. Well, not completely new, since they have been used before. But, there are some realtors say that there’s a significant loss of interest for these tours now.
Other changes in the market
It seems that all sides are showing understanding due to the special circumstances. There’s not a cancellation of contracts, but most sellers are extending their contracts. Also, there are delays in mortgages and eviction. There’s not that much of a panic, as someone would expect.
It looks like the Miami real estate industry won’t stop, but rather change. Also, the city of Miami is still being functional in the global pandemic, showing that’s able to move forward, even in the time of crisis.