Coronavirus Impact On Real Estate

Everyone is wondering how the virus will affect our work, schools, and of course, real estate. Conferences, schools, and some businesses are all closing their doors for periods of time.

Many are wondering about the far-reaching effects this will have on real estate markets, hard money lenders , and other services.

Experts predict that the biggest hit would be commercial real estate, coworking spaces and retail spaces as everyone closes their doors to ride out coronavirus.

Coronavirus Impact On Retail

Retail spaces, and small businesses will be most affected by the virus as more quarantine recommendations are put into place. As more people stay home, and can visit retail locations to shop, more businesses will have to close their doors. This will delay other businesses from opening as well, meaning for decreased demand for retail spaces, and everything but grocery stores close.

Coronavirus Impact On Office Spaces

For office spaces they suggested they would be hit harder than others. It would appear that more businesses would be closed as the virus spread. This can impact commercial real estate investors, as vacancy rates will rise. Co-working spaces will also be affected by the virus as more commuters work virtually, meaning lower incomes for these spaces.

Coronavirus Impact On Residential Real Estate
Residential real estate will also be affected by Coronavirus as well, but in different ways. This first is that there are lower rates than ever before, so it is possible there will be a large spike in refinances. There will also be a stall in the market as well, as buyers and sellers will have to see how the market plays out. For now it is just too early to say the far reaching effects it will have on real estate.

Summary
Many are adapting to virtual and telecommuting processes as they continue to ride out the coronavirus fears. Many realtors, and Arizona hard money lenders are transferring their process to be completely virtual, so they can still offer their services.

For many, this is a time of uncertainty as it is far too early to see the lasting impact of the Coronavirus. The real estate industry will change quickly to adapt to the new market, whatever that may be. For now, it’s most important to stay safe and healthy, and keep a close eye on the markets.

About the Author: Catherine Way writes for Prime Plus Mortgages – Phoenix Hard Money Loans

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