The U.S. property market is as robust as ever as the latest trends reveal what’s in store for buyers and sellers of residential and commercial property in 2021.
Commercial property prices are falling
The economic toll of the COVID-19 pandemic on commercial property prices has become evidently clear as hotel, retail, and office-related properties’ values remain on a steady decline. The number of transactions and sales of commercial property across all sectors have also plummeted drastically this year. Commercial real estate deals have become less prominent as property owners and landlords grant renters and tenants slacker to defer payments and landlords remain reluctant to lower their purchasing and rental asking prices in such difficult times. There is also no expectation that the situation will change due to the current oversupply of commercial properties in relation to their demand in the U.S. property market.
The decline in value of commercial properties is however also industry-specific. Hotel, retail, and office properties have all depreciated in value while the value of apartment buildings and industrial complexes increased, however not by much.
The housing market is booming
The demand for residential property was largely unaffected by the COVID-19 pandemic because people will always need a place to stay. However, with more and more people getting into the habit of working from home in accordance with social distancing rules and regulations, the demand for residential properties is booming. Residential property sales have risen as well as the speed at which sales are finalized. The price of residential properties has also remained rather stable despite the effects of the pandemic on the U.S. property market in general. As it stands, residential properties are selling at a faster rate while price listing remains constant which means we are about to witness the perfect seller’s real estate market in upcoming months.
Not only has the demand for residential properties reached its highest point since the start of the pandemic, but the supply of new listings has also reached its highest point. It appears as though the housing market is more active than ever since the start of the country’s post-pandemic recovery period, despite the drastic increase in property values across the board.
The use of digital technology to facilitate property sales
The COVID-19 pandemic made it almost impossible for potential buyers to physically view properties they are interested in. Of course, this is understandable as nobody would want to risk infection over a property viewing. But luckily, this has not prevented real estate agents and property owners from thinking out of the box. In recent months, we have witnessed a growing number of real estate agents and property owners use various types of digital technology to better facilitate the sale of both residential and commercial properties. Potential buyers are now able to view properties via virtual viewings with the use of 360° cameras, 3D virtual imaging, and even drone mapping. This recently emerging trend has allowed real estate agents and potential buyers to conduct viewing from the comfort of their own homes. Some real estate agents even go as far as producing drone recordings which include aerial views of properties and the surrounding areas, giving potential buyers the perfect overview of the location they are looking to buy in, including local shopping malls, schools, and other places of interest to potential buyers.
The use of digital technology like virtual property viewings and drone recordings of surrounding areas have made the process of purchasing and selling property so much easier, and has without a doubt benefited the U.S. property market in recent months.
Is it a good time to be buying or selling?
Real estate will always remain a safe investment, which means now might be the perfect time to get into real estate investing. There is no economic reason for investors or owners not to be buying or selling property. The latest trends show that the U.S. property market was temporarily affected by the pandemic, but it also shows a high rate of recovery within the booming housing market and with the use of digital technology to better facilitate property sales in the future.