Real estate is a more socially demanding industry than anyone else. Why? Because one has to build relationships in person to get things going. However, COVID-19 suddenly put a halt to all activities. In fact, more than 30% of the work relationships with stakeholders were found strained because of various inefficiencies.
Irrespective of what was happening around, Americans did not stop buying or building homes. Refinancing mortgages also did not stop. However, there is no going back to old ways. So, to continue with the “work mode” and adapting to the “new normal” propelled the tech-averse real estate industry to embrace innovation.
Surprisingly, more than 21% of businesses are now using technology or paper-less processes to drive the business, which had otherwise slowed down due to the pandemic. Now, location does not matter anymore. The kitchen or lounge is readily transforming into an office space now—contactless apps, prosaic features, a 3D video showcasing, and so much more. Things are gradually moving towards digital transformation.
But that’s just a preview of what’s happening now. What else changed in Ohio’s real estate industry? Let’s find out.
Safety Measures Have Taken The Front Seat
Safety precautions are a must, especially when during open house events or house showcasing. Wearing a mask and gloves, using a hand sanitizer are becoming more of a norm. Temperature checks, coming to a showcasing with shoe coverings don’t feel unusual anymore.
Some agents are even getting creative with providing sanitary supplies as a gift to interested parties. And that’s not all. Sellers are now allowing a limited number of people inside their house to maintain social distancing.
In short, everyone is a lot more considerate of others’ situation now. In fact, some home buyers are providing financing in a way that does not drag the closing process. For instance, they are not demanding any formal inspections. So, there are multiple occasions when Ohio home buyers that can close when others can’t even manage to find a home buyer who’s ready to get things done on time.
Competition is Growing Amongst Buyers
With the rise of remote working and remote learning, people are shifting their wants and needs accordingly. However, not everyone is ready to sell their homes unless it’s some financial emergency or relocation. That’s why there is a growing competition among buyers to purchase such properties while maintaining their budget. So, a home is receiving a staggering number of offers. Limited supply is increasing the competition even more. So, it’s more like a bidding war. To prevent things from getting out of hand, include a price cap to avoid spending beyond what’s a fair amount.
“Properties That Need Work” Are no Longer Deal Killers
Although move-in ready homes are high in demand right now, buyers are no longer expecting every property to be at its best. Limited inventory and shifting priorities are changing the perspective of buyers amidst the COVID-19 era.
Having said that, it might still have some effect on the selling price. But that’s definitely not a roadblock anymore.
Virtual Transactions Are Getting Popular
Virtually buying homes and selling practices are here to stay. That’s what we believe, especially with COVID-19 still growing profusely. So, it’s becoming a safe alternative for concerned home buyers or sellers. Like virtual home tours, signing digital contracts is also becoming more prevalent now. This allows buyers and sellers to have minimal in-person contact.
But that’s just the beginning of a change triggered by COVID-19. Surprisingly, there’s something else that you should have an idea about? What’s that?
Real Estate Industry in Ohio- The Market Dynamics
Did you know that some segments of the Ohio real estate market are hotter than others? Shockingly, even entry-level homes are in high demand right now? Various surveys showed that more than 3000 homes and condos were sold in September alone. But that’s not the good part. What’s amazing is that it’s 20.2% higher than what was a year ago.
Home prices also rose by 16% this year. So, technically, Ohio was still booming in the real estate market when things started to get back to the “new normal.” Given the COVID-19’s disruption to the industry, this development is remarkable. In fact, things are better than what happened in the 2008 housing crisis.
Certainly, homeowners are in a better position financially. Their equity is up 20%. At the same time, there are still concerns about the pandemic. But this year, everyone learned to navigate the challenges and how to drive their business amidst adversities.
What’s Next?
As we already mentioned above, there is a shortage of inventory. So, buyers need to be proactive when searching for a suitable property. It’s important to note all the necessary actions so that everything goes smoothly and in a timely manner.
Also, there has been an uptick in buyer’s remorse since decisions need to be quick. So, it’s advised to be fast enough to make an offer rather than pulling it off at the last minute. Remember, the moment you retract, there will be hundreds more ready to make the same offer. Don’t regret your decision at that time.
Wrapping Up
The market continues to remain active, and prices are steady at this moment. But the sale of units is projected to increase by 13 percent next year with a 3-5 percent increase in the home value.
But currently, the stage is like that buyers need confidence that they can continue purchasing since more than 1 million Ohioans lost their jobs, temporarily or permanently. On the other hand, homeowners must be confident enough that their health won’t be at any risk when selling their home.
Since no one can dodge the COVID-19 bullet, it’s better to adopt new technologies or innovations to conduct business. Virtual 3D real estate tours, using sanitary tools such as masks, gloves, and sanitizer must always be on the list of higher priority. Those who are still succumbed to the age-old working style must use this opportunity to grow their business.
Does that make sense? Or are you still trying to make things work with your conventional strategies?
