By Terry Tremaine
2020 MetroTex President
These are unprecedented times. COVID-19 has disrupted lives with health concerns, financial struggles, and restrictions on activities. Amidst this uncertainty, real estate professionals, buyers, sellers, landlords, tenants, and investors are trying to figure out the best course forward.
I recently listened to two industry experts give their views regarding the coronavirus crisis and what it means to consumers. Here are a couple of takeaways that I found very important.
1. Three things impact home sales: job growth, low interest rates, and home price appreciation.
It appears we will have low interest rates for a long time because we have proven in the past that there is no better way to come out of a recession than “cheap money.”
Job growth is a bit more challenging but different areas will have proven to be quicker than others depending on the industries closely tied to their economy.
Home price appreciation will be directly tied to inventory. Quite simply, if there are more homes to sell we will see appreciation.
2. Urban living may see a change.
A lot of people are going to want to move to the suburbs. And when Millennials start getting married and having children, all of a sudden living on the 20th story of a high-rise downtown may not be as appealing as it has been in the past.
The suburban market is going to have a lot more demand than we’ve seen in the last decade. The same is true for communities within 40 minutes of a major urban area.
As managers and business owners have gotten comfortable with remote work, there are more opportunities for people to live 40 minutes away and can get their job done remotely.
As you can see we may have a lot of changes on the horizon, but as we have proven before across North Texas, we are resilient and in the end, we will come out of this with stronger communities and neighborhoods.
Terry Tremaine is the 2020 President of The MetroTex Association of Realtors is the largest Realtor association in North Texas and sixth-largest real estate association in the U.S. MetroTex provides programs and services to over 21,000 professionals involved in all aspects of real estate. MetroTex empowers its members through professional development, advocacy, and market intelligence leading to prosperity. Find the Right Realtor and the Right Home at DFWRealEstate.com.