Since March of this year, the U.S. economy and all industries therein have in some way, shape or form been affected by the long reach of COVID-19. The pandemic has triggered chaos across the country as business owners and individuals alike struggle to regain the stability they enjoyed such a short time ago. Businesses that operate at a small margin have been going under at an astounding rate as they cannot withstand the costs necessary to keep the doors open coupled with the enactment of new guidelines that strictly limit their ability to provide goods and services. Some industries have been lucky enough to continue operations with little to no interruption, while others such as the fitness and cosmetology industry are struggling to keep their head above water. That being said, I intend to shift the focus of this article to the residential real estate segment in particular.
The residential real estate market has been operating at a high level in the recent past and it is easy to wonder whether the current pandemic is enough to impede such growth and success. All of this uncertainty leaves business owners and individuals with concerns about whether or not to invest in real estate. The purchase, rental, and use of property is essential in the day to day operations of most businesses. On the other side of the coin, potential first-time homebuyers are questioning whether taking that first step is the right thing to do in light of the current circumstances.
Upon the conclusion of my research into the topic, I am happy to inform those who may be concerned that the residential real estate market is alive and well.
The following are some key takeaways from my research:
- The residential real estate industry, in general, has not been significantly disrupted by COVID-19 aside from minor delays and precautions
- New neighborhoods continue to be built as constructing homes requires minimal face-to-face interaction and is not largely impacted by current COVID-19 guidelines
- The purchase of residential real estate remains a safe investment even during a crisis
- Many investors are shifting their resources toward residential real estate as opposed to stocks and bonds as the residential real estate market is less likely to suffer from unfavorable market fluctuations
- Most importantly, the residential real estate market continues to thrive
So if you fall into the category of an anxious prospective home buyer or business owner with concerns about expansion, fear not; your investment in real estate should prove to be a safe endeavor.
It is uncertain how long the impacts of this pandemic will be felt by our economy, but at Strothman and Company, we believe it is important to gain an understanding of current developments in order to advise our clients with the most up-to-date and relevant information possible. Doing so allows us to provide our clients with the quality service they expect and deserve.