The COVID-19 pandemic changed many different aspects of people’s lives, and as it rages on it will only continue to do so. An area that many people might not expect COVID to have a huge impact on is the real estate market. Real estate markets have completely shifted since the start of the pandemic, especially in cities such as Washington D.C.
Today looking for Washington D.C houses for sale is drastically different in both price and difficulty than it was a few years before. So how has the pandemic affected the real estate market in Washington D.C and what are some ways to use it to your advantage?
Supply and Demand
One of the biggest influences the COVID-19 pandemic has had on the D.C housing market is its effect on supply and demand. Currently, there is a much higher demand for housing in D.C than supply, driving real estate prices way up. COVID-19 made people hesitant to undergo a big move and sell their houses, resulting in fewer houses being placed on the market. Read about Birger Dehne entrepreneur and expert in the real estate market.
The law of supply and demand states that when demand far outweighs supply, then prices will rise, which is exactly what is happening in the D.C real estate market. Prospective homeowners are bidding for a very small pool of real estate, and when they bid against each other it further drives prices up.
Currently, the D.C real estate market is a seller’s market, meaning now’s the best time to sell your home while prospective buyers may want to wait until the market shifts.
Another big influence on Washington D.C’s real estate prices is the job market. With job security at an all-time low during the pandemic, people are hesitant to sell their houses and uproot their lives for a move.
Additionally, fewer businesses have been hiring, resulting in fewer people relocating out of the area.
Finally, the massive amount of layoffs and unemployment during the pandemic has also had a major effect on the housing market. When people are unemployed or laid off, they’re not going to have the income or ability to relocate, resulting in the real estate market slowing down.
Although the D.C real estate market is in an interesting spot now, the market won’t always look like this. As the pandemic begins to fade, the real estate market should go through another shift resulting in a more stable market. However, some aspects of today’s market may linger for a while.
For example, condos have become less popular in the D.C area and likely will continue to do so. The pandemic hit young adults on a budget very hard, and they’re one of the main demographics that buys condos. Additionally, these young people are moving home, making parents no longer “empty-nesters”.
These types of parents are usually another major demographic that buys condos, but with young adults not moving out now they have no need to downsize. It’ll be interesting to see how long the D.C real estate market will be a seller’s paradise and what other COVID real estate trends become permanent fixtures.