How real estate is being sold during COVID-19 in Houston

During the first months of the pandemic, the real estate market suffered only slightly. From February to May people were in some state of shock, so there was a break, but since June everything has normalized. During the period of self-isolation, when people had to stay home, they had time to study the market and make decisions about buying their own homes. House buyers Houston, too, have studied the market and are ready to offer a good deal at any time.

Market sentiment
All market participants behave calmly, there is no panic or rush. The housing market in the large cities is fairly stable for now. Despite the coronavirus epidemic, real estate prices are also stable. With a limited demand, sellers prefer to hold on to their homes rather than lower the price tag. Thus, many real estate agencies note the activation of agents in the real estate market with the onset of the quarantine. Demand for investment in construction and unfinished objects has dropped sharply.

Who’s buying houses now?

At the moment, there are several categories of people who will buy homes under quarantine:

1. Those who are not afraid to take risks, so they are now buying the most liquid housing possible – often a small house that can later be rented or resold profitably;
2. Those who were planning to buy real estate for themselves. They have a certain amount of money (usually 50-70%) for the first payment, or you can always take a loan.
3. Those who have a steady income;
4. Those who have had time to take their savings out of the bank and want to at least keep them for the uncertainty of the world.

With the quarantine on the rental market, there has been an increased demand to buy inexpensive homes. Interestingly enough, people are willing both to buy and rent a home for several months. Planning to rent an apartment for six months is difficult – you need a good financial cushion for that.

In general, we can say that during and after the quarantine period, clients will look for a home that meets the following criteria:

• high quality and liquidity;
  favorable price;
• reliability of the developer and
• readiness of the property.

Buyer Profile

Buyers now want to buy for cash. They live mostly in non-urban areas where they can afford it. In Houston, more than 30 percent of transactions during the emergency were financed by banks; before the pandemic, 60 percent of buyers used loans to finance home purchases. Last year, most of the home buyers were millennials, but this new trend has quickly changed. Active buyers today are in their 50s and older. They have seen their assets depreciate in previous recessions and are now looking to invest in the perceived security of the real estate.

Buyers also expect better service from their agents. The National Real Estate Association cited the example of home appraisals, which need to be more accurate to make buyers feel more secure during a transaction.

Analyzed the current conditions of the metropolitan real estate market.

• Outdated real estate. Here we are talking about houses, in which the technical deterioration of the building has long been observed, which loses its liquidity. In this case, it is better to invest in new real estate;
• housing with low margins – as a rule, it is the house of economy class.

Conclusion

The real estate sector is at a tipping point. It is no exaggeration to say that after years of steady demand and soaring asset prices, the sector is going through its most challenging period ever. Right now, it’s hard to know how persistent behavioral, geopolitical, and technological changes will cumulatively impact individual assets and business models. Nevertheless, the first signs of new trends are already emerging, and therefore some strategic and operational steps can begin to be taken.

Throughout history, crises have led to significant changes in society and the economy. And as a rule, the most innovative and determined companies emerged from the crisis stronger and best prepared for a new period of growth. In 2022, the number of real estate transactions will increase. We are already seeing an increase in real estate sales, which began in December. Banks also have a positive outlook on the dynamics.