Heated real estate market after Corona only a temporary phenomenon?

During the corona crisis, we already wrote extensively about our estimates of how the real estate market would behave after the Corona lockdown. Our forecast that real estate prices will not fall shortly after the Corona lockdown and that there may be a rush on real estate is now a fact.

More than that ... Residential real estate is flying out these days ... at prices that are even higher. then for the Corona lockdown. More than ever, prospective buyers feel rushed to buy. We can even say that there is currently a "shopping spree" going on. In the first weeks after the restart, the number of sales and rentings almost doubled in the real estate sector. Due to the enormous “pressure” currently on the real estate market, real estate prices appear to have risen considerably in the first weeks after Corona.

This phenomenon is partly supported by the fact that investors focus maximally on real estate investments in times of crisis. This is due to the uncertainty on the stock markets and the low interest rates that make mortgage credit cheap. Investors are currently also “very hungry” for real estate.

 

 

Owners who sold just after the Corona lockdown or who will still be selling during the current “decompression period” will of course do a “golden matter”. These homes are not only sold quickly but often also at prices that (strongly) exceed the asking price… .

But in all likelihood the current “shopping spree” and rise in real estate transactions and prices is only a temporary phenomenon. It can be expected that within a few months, when the impact of the Corona crisis (including layoffs that will fall, companies that are going to fall, etc ...) will really become concrete, the real estate sector will still experience a “dip”.

Owners who considering “selling” real estate, it is best to do so as soon as possible to take full advantage of the current “price increase” and “rush”. After all, there is a good chance that, within this and a few months, the situation will tip over completely and could even go downward.

Feel free to contact us for a free consultation, estimate or all your other real estate questions!