Impacts of covid-19
Covid-19 is an ongoing pandemic caused by infections in the respiratory system by a virus strain. The disease has affected different people in different ways, including the real estate market in the U.S. Real estate refers to land with permanent structures built on them, including buildings, homes, or fences. The designs can be artificial or natural. (Vega, M. (2021). The American real estate market has been dramatically affected by covid-19. Residential real estate consists of properties with fewer individual units residing in them, e.g., single-family homes, duplexes, condos, and townhouses. Commercial real estates are properties built for business purposes and provide spaces that people can use to work. Both residential and commercial real estate has been affected by covid-19 in different ways. Due to the lockdown measures developed by the U.S, the industry took some time to recover from the effects of both the lockdown and the pandemic.
Real estate was affected by the pandemic through the U.S recession, which caused economic disruption globally. Since February 2020, there was a decrease in the real estate market’s sales according to the land registry records compared to the forms of 2019. Most real estate transactions were done for sales, mortgage facilities, and mortgage transfers. These sales decreased because of the impacts of the pandemic on families and their households. (Del Giudice, F. P. (2020). The volumes of transactions of real estate’s credits and values also decreased significantly because families were conserving the little they have to survive through the pandemic rather than buying homes and residential homes. Due to the decreased sales, recovery processes were implemented to enable residents to pay their loans despite the impacts. These processes included reducing interest rates of residential loans, eventually leading to the improvement of real estate sales after that. Real estate prices have significantly dropped in a bid o encourage families to buy residential homes instead of saving their finances for future use and to help themselves out of the pandemic effects.
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