Uncertainty has impacted the estate market enormously in recent months. The global shut down has impacted the market on a large scale, with people unable to sell, buy or renovate properties as they used to.

The effects of the global shut down are clear, with web traffic to real estate portals dropping by as much as 40 per cent since the coronavirus outbreak began. New listings of homes being sold have dropped by as much as 70 per cent in some areas of the US, highlighting an enormous challenge for the market in the months to come. These rapid changes are the result of many factors that are challenging the property market.

Given the current difficulties in all industries, people are opting to hold on to their finances as opposed to spending, meaning investment in property has reduced significantly. In addition to this, the industry’s ‘non-essential’ status has made it impossible to view properties in many states and cities, while in others it has presented large challenges.

New challenges have arisen, such as banks making it harder to get financing for properties. The shut down of shops, shortage of materials and difficulties faced in the world of transportation mean it has become even more difficult for materials that are required in home renovations to be delivered. Because of this, property flippers are struggling to renovate properties they have already purchased, again delaying the market’s ability to continue operating.

Those who travel overseas to purchase properties in the US are also unable to do this, meaning there are significantly less international buyers, also impacting the market.

The effect on the property market will differ between cities and communities, depending on local conditions. The shock to the economy will affect the property market differently in various areas, depending on local conditions. ATTOM Data Solutions released a report that stated that property markets in Florida and the Northeast may be particularly vulnerable.

These challenges also highlight upcoming opportunities. As the housing and flipping markets begin to recover, demand will be higher than ever. As such, many people in the property industry are spending time educating themselves and viewing the latest trends in preparation for the market’s full return.