The coronavirus affected every industry and millions of lives in a matter of a couple of weeks. Let’s discuss how COVID-19 is affecting Florida’s real estate market.
There is a saying that “Nothing ever stays the same for long.” Based on the past couple of weeks, these words couldn’t be truer. COVID-19, more commonly recognized as the coronavirus is the first pandemic since 2009’s swine flu (H1N1). It is affecting every industry around the world, some with more severity than others. We face uncertain times in the weeks and potentially months ahead. Let’s look at how coronavirus is affecting Florida’s real estate market.
How Has Florida’s Real Estate Market Changed Due to Coronavirus?
It was just a few weeks ago that Florida’s real estate market was in the midst of experiencing an increase in the number of homes sold and an increase in the median price of homes sold. The shortage in inventory was a very strong indicator that homes are in high demand. What is the state of Florida’s real estate market as of now?
The most noticeable change at the moment is that sellers are more cautious of listing agents showing homes to potential buyers. This is especially true of sellers who are still living on the property they have up for sale. The reason is that sellers cannot be certain where potential buyers have been and who they may have been in contact with. They are leery of people traipsing through their home.
What Does This Mean for the Future of the Florida Real Estate Industry?
If sellers are reluctant to put their home on the market until the threat of COVID-19 subsides, it could result in amplifying the shortage of the homes available on the market sale. This would further increase competition for homes that are on the market and drive the prices of homes up.
There is also talk of cutting interest rates in an effort to stimulate the economy. This is an enticing opportunity for those who are contemplating buying a home.
Fortunately, as of right now, the economy is nowhere near as dire of a situation as it was in 2009. Hopefully, it doesn’t reach that point either. We can’t say for sure what the future holds as we watch history in the making play out. What I can tell you is that here at Gitta Sells, my team and I are here to answer any questions you might have regarding selling or buying a home. Contact me at gittasells@gitta.com or 407-330-2181 and let’s navigate these times together. Until next week, stay safe!
