The History of COVID-19 and the
Maryland Real Estate Market
This article about the COVID-19 Virus and the Maryland Real Estate Market was originally written by Victor A. Servetnick on March 10, 2020. We updated it somewhat. More updates will be made as the situation with COVID-19 changes.
The COVID-19 pandemic has many people on edge about the economy and the real estate market. We are providing a look at what’s really going on, according to Dr. Lawrence Yun. He is the Chief Economist and Senior Vice President of Research at the National Association of Realtors. Getting Clarity During COVID-19 provides valuable information about the impact of COVID-19 on real estate. When you read this material, you will also be able to hear an interview with Dr. Yun. It is the “This Too Shall Pass” Podcast, which is part of The Brian Buffini Show.
The COVID-19 pandemic quickly transformed from its beginning as a regional health scare in China. It rapidly moved all around the world and is now a worldwide issue.
The Maryland real estate market has a severe shortage of available properties. Maryland Realtors (our State Association) has told us that active listings are down by about 50% over this time last year. It is not entirely due to the COVID-19 pandemic, though. It is more due to favorable interest rates causing less people to sell. The activity on the current listings and number of property showings has declined, though, in recent weeks because of consumer fears. As a result, homeowners trying to sell or rent their homes are seeing a drop in interest for their properties. New homeowners who would enter the spring market are likely to wait to list their property until the virus is under control either by the development of a vaccine or a natural decline in new cases.
Some of the first countries that were impacted now seem to be recovering. COVID-19 has disrupted everything! The financial markets on Wall Street were in a free fall in March 2020, the oil markets worldwide seemed to collapse, and the banking industry was looking into changes to help consumers.
Because an official treatment option is currently in development, there is not currently a cure for the disease. The best treatment option is relatively simple. It doesn’t seem to be much different than how you would treat a cold or the flu. The bottom line is that, if you are sick, the best thing to do is to self-quarantine … stay at home! While we are anxious to show properties to consumers who need to move, we request that consumers who are “under the weather” wait to schedule property showings.
Homeowners who are on the market now will need to exercise patience with their listings. We believe that they can likely expect a market that resembles what we see during a harsh winter. Many of the buyers and renters who are searching for their next homes right now are doing so out of necessity. We expect this trend to continue, possibly through the middle 2021.
It is not all bad news, though, for the real estate market. We are noticing an uptick in online traffic related to listings and general inquiries about properties already on the market. This naturally begins to happen toward the end of the winter season and is holding true despite COVID-19. This means that there is a pool of buyers and sellers who are in the pipeline waiting for reassurance. We anticipate that they will be eager to join the real estate market once there is positive and reassuring news. Despite the many closings that are happening now, we are available to discuss properties by phone or e-mail through our CONTACT FORMS. It is also possible for us to do a video chat using FaceTime or Facebook Messenger. Also, if you own a home that you are thinking of selling, we can give you a FREE Market Analysis.
During times of adversity like right now, it is the best time to get information on the real estate process if you’re thinking about making a move in 2020 or even in 2021. We encourage you to Contact Us with your questions and concerns. You can also read more current information on COVID-19 and the Financial Impact in Maryland.
