Covid 19 did affect real estate in many different ways. I wanted to go over what I think were the biggest effects on real estate.
1. People were mandated to stay in their homes, they either liked it or they hated their living situation. This will cause people to move or stay because of their fears of finding another property that fits their needs. Whether or not they decide to stay or sell will affect inventory.
2. There will be families relocating for job or personal reasons. This will put high demand for real estate in those areas. You can basically watch where the people are moving to. This will put pressure on the areas that are growing and opening inventory where the population is not growing.
3. Building materials are going up because of the lack of inventory that stores have. It takes longer to get material and there is less of it on the market. This causes the prices to go up. For Example 1 car garage used to cost me $10,000 now the same garage is $12,500. This will cause new builds to be more expensive. Making resell homes more attractive per sq foot price.
4. The working force is not as good as before Covid 19. With a lot of the working force not wanting to get back to work makes less people for the job. Some companies are even giving a nice bonus to attract more workers.
5. Lastly, paperwork, title and closing can take a bit longer if a city is not yet opened 100%. Getting homes recorded with the state and getting permits may take extra time. City inspections may be delayed because of the shortage of workers for some cities.
There are a few reasons why COVID 19 is affecting real estate. Prices will continue to go up because of all the delays and pricing of material and help.
I still can get my clients a great deal. Call 216-703-5740 (Brett)
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Thank you