A recent article from the Harvard Business Review on the economic implications of the coronavirus are likely to be widespread, and devastating. And it will impact the Boston real estate market, if it hasn’t already.
Prior to the recent health crisis, the downtown Boston condo market was facing a huge challenge with a lack of affordable housing. Those of you who are thinking of buying or selling a Boston condo, will be particularly interested in this aspect of the coronavirus story.
Read on as we look at the likely impact of the coronavirus on the downtown Boston real estate market.
THE CURRENT STATE OF THE HOUSING MARKET
Before the onset of the pandemic, America’s housing market was suffering from a chronic lack of supply.
Across the country, demand for homes exceeded available units. This situation was exasberated in major cities, areas like downtown Boston certainly experienced this.
While this was not an ideal situation, it was a symptom of a flourishing economy.
CORONAVIRUS LIKELY EFFECTS FOR REAL ESTATE BUYERS
Prospective homebuyers who are confident that their income will remain consistent throughout this crisis now find themselves in a good position.
The market is likely to weaken as a result of the coronavirus, lowering real estate prices and benefiting some buyers.
In addition, interest rates are low and are likely to remain so for the foreseeable future. Borrowing is therefore affordable.
However, the effect is less positive for those who have lost their jobs, or who are in danger of losing it. For those uncertain of their earning potential in the near future, buying a Boston condo for sale may have to wait.
If you are in a position to buy, but are wary of spending too much time in public, please call us, we will be able to provide you with a virtual tour.
CORONVIRUS LIKELY EFFECTS FOR REAL ESTATE SELLERS
If you’re interested in selling your Boston condo, you should seriously consider holding of on markerting your Beacon Hill home or Midtown high rise condo, you must accept that the price you will currently be able to get for it may be lower than the price you would have gotten before the onset of the coronavirus outbreak.
If you need to sell your Seaport or downtown condo soon, you may want to contact our team on creative ways you can market it.
Some sellers have recently been using technology to show prospective buyers their home. Apps like FaceTime can be used to give virtual tours.
WHAT SHOULD I DO?
As you can see, there is no clear path for buying or selling Boston real estate at this point.
If you’re thinking of buying or selling a home in Boston, contact us today to schedule a consultation.