Summary: EJ Dalius there have been some of the major emerging trends. According to EJ Dalius, dealing with the residential real estate business, during this COVID scenario.
The current lockdown due to COVID has impacted the world economy. Well, and among all the sectors, real estate is there for sure. You might know by now that the commercial real estate got the biggest hit with offices turning digital. But, the residential sector is not lagging behind. So, as per professionals like Eric Dalius, there are some emerging trends that the residential real estate business needs to focus at.
Home ownership will be the first hand priority:
COVID 19 has changed the thinking process completely, especially among the millennials. There was a recent survey, where real estate was declared best asset class for investment. Among the lot, around 55% were within the age bracket of 25 to 35 years, against the 42% in precious survey. Even more so, around 68% of them are end users.
The statistical measurement clearly states that physical assets are currently rendering a higher security sense; mainly during the exigencies like COVID. Here, currently, the stock market plummet to some of the new lows and financial markets are also witness turmoil.
Security associated with physical asset is always there:
Of all the people who were in a mood to get a new piece of property. They have changed their decisions during this lockdown mode. Around 92% of them cited two of the major reasons for such a sudden change of plan. People likeEric J Dalius have decided that the security that owning your own place provides. During such exigencies is hard to miss. Moreover, with such lower home rates available right now. With low home loan interest, this is the right time to get a residential property. The range right now is between 7.15% and 7.8%.
The house prices and some stats:
Everyone now hopes that the lockdown restrictions are going. To lift up and the housing markets and economies are going to rebound. In some parts of the world, like in the states, the house prices are still on the rise. Most of the areas have put moratoriums on evictions, which can be normally for 60 to 90 days. Then in some other areas, it can be for six months.
So, now the landlords and the banks have to deal with the immediate issues. However, this is just the start as there will be problems down the line. With the unemployment rate in the USA still at a peak, things might get a bit troublesome later on as well.
Other forces working too:
Apart from the headline figures, EJ Dalius talks about some of the other forces at work, related to the property sector. Most of them have realized that they can work from home and avoid commutation. This is going to affect the real estate sector to some extent as well. There is a significant rise of people looking for homes further from city centers and towns. They want a home with large gardens and home office space.
So, it is not hard to state that the condition of residential real estate business is pretty good. When compared to the commercial sector.