Home sales in the greater Austin area were down 21.6 percent by late April 2020, according to the latest report by the Austin Board of Realtors. The greater Austin area is but one of the many cities where the COVID-19 pandemic has hurt real estate the most. The pandemic has disrupted real estate cash flow not only in Texas but across the globe.
It has come to the point where large companies, such as the Mall of America, are falling behind on their mortgage payments due to the lack of revenue. However, despite these challenges, realtors remain positive about the future of the real estate market.
How Texas Realtors Are Coping With Lockdown
Current lockdown restrictions are taking their toll on the real estate market. Spring is typically a prime season for home sales. However, with unemployment on the rise, social distancing has hampered house showings significantly. The collapse of oil prices has also done its part in making the future of the market uncertain. Many sellers have withheld sales, causing housing inventory to become limited.
Despite this, realtors are finding ways to overcome the lack of physical presence. Virtual showings are the new chief way to showcase homes to potential clients. Not to mention, deals are being fully closed in the digital space as well. Even though there was a substantial drop in sales, the demand for housing is still enough to outstrip the limited inventory.
Despite Sales Hit, Some Realtors Are Still Optimistic
According to one of the top Austin Custom Home Builders, there are plenty of financing options available for custom homes that may help buyers determine the right investment and capabilities. As such, continued real estate activity points to the likelihood that Texas is waiting for the market to spring back to life. Even JP Piccinini, the founder of JP & Associates Realtors, cited that interest rates are at an all-time low. He also mentioned the fact that the spring prime season had generated a demand that is yet to be served due to the lack of inventory. These factors, he says, will not only guarantee sales but will also ensure that prices will remain stable throughout the year.
Opinions To The Optimistic Viewpoints
Some view the situation as a potential bane for the real estate industry. According to Robbie Briggs, CEO of Briggs Freeman Sotheby's International Realty, the market will favor neither buyer nor seller these coming months. However, he also said that opportunists will still take advantage of the situation. Opportunity buyers will come out of the woodwork to buy properties to flip later on.
There are many points to be made about the future of Texas realty amid the COVID-19 pandemic. Time can only tell which outcomes will come to pass and which will be mere speculation.
* This is a contributed article and this content does not necessarily represent the views of realtytoday.com
