What is the relative impact on Real Estate from Covid-19?

By
Services for Real Estate Pros with John Henry Masterworks Design International, Inc. 13013

Recently I have wondered about the construction industry in the Central Florida area as government shutdowns and stay in place orders proliferate here and around the country.

Every business has been relegated status of Essential or Non-Essential.  Car mechanics, gas stations, food stores, hospitals, medical and fire emergency, are deemed 'Essential'.  What about real estate?  What about design and construction?

As of this writing California, Massachusetts and Illinois consider homebuilding an ‘essential business’. Pennsylvania does not. You should check into the legal status of homebuilding or the practice of buying and selling properties in your state per the Federal and State edicts.

There are homeowners now quite concerned about the transmission of the virus and we are seeing fewer houses opened to the public for inspection.  Sellers, eager to continue marketing their properties, have limited inquiries to online descriptions including photos and videos.  This will not clinch many deals except for those very anxious to buy under any circumstance.

There seems to be a pause in those moving forward with design and construction as well.  The loss of a job or layoff is not good for the credit sheet when applying for a mortgage.

However, orders to quarantine and shut down cannot be maintained for an extended period. And eventually, we will go back to a sense of normalcy and continue as before.

To reassure your clients about the relative danger of the virus compared to other businesses, you might refer them to Moody's chart (above) which categorizes real estate quite low on the chance of exposure...

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Tags:
covid 19 impact on real estate and construction

Spam prevention
Show All Comments
Ambassador
4,158,841
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi John- I know that we cannot keep this country totally shut down for too long, and yet we have to get this thing under control. The Stay-at-Home directives are buying us time for the medical community to tool up and to the drug companies to find something that will help.  In my heart, I feel that when this is over this country is going to be chomping at the bits to get back to normal. 

Mar 30, 2020 06:51 PM #1
Rainmaker
3,339,364
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

John, I noticed the only people working are the construction guys in Los Angeles and the Landscapers around LAX and the rest of the City the Gardeners, Endre

Mar 30, 2020 10:41 PM #2
Rainmaker
3,154,917
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning John.

In Arkansas, real estate is considered an essential business.  Hence, so are the title companies, lenders, banks etc.  

Mar 31, 2020 02:24 AM #3
Rainer
236,318
John Henry, Florida Architect
John Henry Masterworks Design International, Inc. - Orlando, FL
Residential Architect, Luxury Custom Home Design

Hello, Kathy Streib I agree with your assessment.  Thanks!

Endre Barath, Jr.  Hi Endre, each area has its own rules.  It is quite strange seeing so few out on the roads and offices closed!  Thanks

James Dray   Glad to hear the real estate industry in Arkansas is still humming!

 

Mar 31, 2020 11:57 AM #4
Ambassador
1,934,979
Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

John Henry, Florida Architect  Yes it is difficult for us in Pennsylvania we can finish what we have in the pipeline as for new business no showings 

Apr 01, 2020 05:23 PM #5
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
236,318

John Henry, Florida Architect

Residential Architect, Luxury Custom Home Design
Ask me a question
*
*
*
*
Spam prevention