The possible repercussions of COVID-19 on the housing market

COVID-19 has shaken the world in many ways, and people's lives will never be the same. While the real estate industry has not reached a stable pace over the past few years, stakeholders are already faced with new challenges.

It's challenging to let go of misgivings, especially during a crisis. Throughout the decade, real estate assets have resulted in consistent income, with returns notably greater than traditional sources of revenue. The value chain has been disturbed, and real estate players are among those who have been hit terribly. According to Eugene Bernshtam, spring homebuying season has been greatly affected by the global pandemic, due to social distancing orders implemented by health authorities.

Real estate experts expect a significant decline in sales as property showings are virtually impossible during these times. In terms of prices, there won't be notable slashes in the price tags. However, a competitive price will always be welcomed by buyers. A decrease in home sales does not require home sellers to chop off amounts from their listings. As long as the price is attractive, a buyer will be willing to purchase a good home.

Whether buying or selling a home, one would have to manage their expectations, mentions Eugene Bernshtam. Prices are more likely to drop during winter, which makes the last quarter of the year the best time to purchase a house. Sellers must get used to digital walkthroughs and remote signings as social distancing measures are likely to stay for long. One would have to be patient and flexible as the process of selling and buying a home will be different and slower.

Eugene Bernshtam is a real estate developer and head of Avalon Holdings, LLC and its affiliated entities. For more updates from Mr. Bernshtam, visit this page.