Across the country, people are receiving the vaccine and it seems like the pandemic is finally nearing an end. With the vaccine efficacy rate being 95%, it’s only a matter of time before this is all behind us. Of course it’s worth noting that just because the pandemic is nearing the end, we’re still going to feel the effects. One of the areas that could be changed forever is the real estate industry.
Businesses have had to adapt to a new way of operating and the businesses whose work could be done remotely have allowed their employees to do so. It’s the prospect of remote work becoming a permanent policy that has real estate agents in large cities a little concerned.
Here are some changes we could see hit our favorite cities.
Since businesses have allowed some of their workforce (if not all) to work from home, many of those workers hope that it will become a permanent practice. It’s estimated that 1 in 4 Americans will be working remotely this year. Plus, Work from Home Policies and Practices conducted a survey and it shows that 36% of participating organizations will reduce the number or size of their offices.
What does this mean? Since employees will be able to work from home, they no longer need to be in the city. They’ll save money and eliminate travel time, but it also means that those looking to buy a house can look at homes on the outskirts of the city where it’s more affordable and they get more bang for their buck.
Competition increases among buyers
Across the country real estate agents say they’re experiencing a severe shortage of homes for sale. They also worry inventory won’t be replenished fast enough to satisfy demand. Since the housing inventory is so low, buyers are submitting competitive offers in the hopes that the seller will accept their offer. Some of the ways they’re doing this is by offering to pay at or above asking, pay in cash, or waive the usual (and recommended) contingencies.
Note: If you need to sell your home quickly, you could get offers as soon as you put it on the market and make a decent profit!
House prices skyrocket
It can be very tempting to list your house at a higher price due to it being a strong seller’s market, but that’s not necessary! Buyers are so eager to buy a home that they’re submitting offers above the asking price. What’s more, if a property is really appealing to buyers, the home could be the subject of a heated bidding war. Who knows, the bids could get so intense, the price could go well above the asking.
Relocation becomes a possibility for some remote workers
Employees who have the ability to work remotely aren’t just choosing to move to the outskirts of the city, some are choosing to relocate to a completely new area. We all know city life is expensive and now that people may have the option of moving somewhere that’s more affordable while still keeping their job… It shouldn’t be too surprising that people are showing a greater interest in moving to the suburbs or rural areas where their money goes a lot further, it’s quieter, and life is a little more relaxed.
Remote work could have a big impact on city life
City life isn’t going to be the same after the pandemic, but that doesn’t mean it’s going to change for the worse. It’s true that people may move outside of the city, there will always be folks vying for the lifestyle that only comes with city life.
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