Many commercial and business industries are impacted by COVID-19 and the real estate industry is no exception. Is COVID-19 affecting new homes sales in Polk County? Do you think purchasing a new home is a good idea right now? Big decisions require many thoughts and considerations. As an investor, a real estate agent, or a developer, you are trying to maintain your business while helping others decide if a home purchase is a smart choice right now. Unemployment and the COVID-19 pandemic has brought many unresolved issues. Having vital information to make wise choices can help us to navigate this unchartered health pandemic.
The Reality of Home Sales in Polk County During COVID-19
The simple reality is that real estate sales drop in general during histories of pandemics. According to Zillow reports, home sales are expected to be less in the Polk County area, but this doesn’t mean that their value will decrease. In particular, new home sales have a different trend. In a typical recession or down market, some second-hand homes might decrease in value. But new developments are more likely to retain their prices. This is a good sign for investors and sellers alike–despite the pandemic. Big Builders can push the home value in these new developments to peak limits. Neil Nabar believes the housing market could hold up despite the pandemic and uncertainty. It is hard to predict the future of home buyers at this time due to the constant changes taking place as cities and counties open up in phases.
Signs of Positive Developments on New Home Build at Polk County
Evident site clearings
Site clearings as a definite sign that construction has commenced and a new buyer has purchased a home in the area. There are notable home builders in Polk County that have seen a steady number of site clearings, namely:
- DR Horton
- Southern Homes
- KB Homes
- Four Seasons
- Highland Homes
Continuous site clearings also indicate that the developer has funding to establish non-residential developments in the area, such as landscaping, amenities, or road improvements.
Continued marketing approaches
New developers also keep their marketing tactics aggressive. That is a sign that developers are not downsizing on their spending to promote the new homes. There’s bonus money offered to both inside and outside real estate agents. Realtors feel encouraged to bring in new clients to the builders’ model center. Buyers feel the pull to finance through the builders in order to receive paid closing costs.
It is understandable that developers would find this approach useful. Firstly, most new home buyers have an identical demographic:
- Older Millennials: People who are more likely to have a stable career, unaffected by the consequences of the pandemic. Thus, they are able to secure mortgage payments despite COVID-19.
- Generation X: Individuals who are close to their retirement and are more likely to have investments in place. The new home may be an additional investment to their already-growing portfolio.
Thus, marketing to this particular generation group, whether as an insider or outsider agent can be beneficial.
Easing social distancing restrictions
As more stay-at-home orders are lifted, the economy is expected to have a gradual shift. This means that potential buyers will have their jobs restored, and agents can offer site viewings to improve the closing of sales.
Social distancing has created a large impact on the real estate market since buyers prefer site viewings before making solid decisions. Sadly, this is something that both developers and agents cannot fully offer during the heavy period of at-home orders. Home sales are expected to pick up now that COVID-19 restrictions have been lifted in many areas at Polk County. Virtual home tours have been established during this COVID-19 pandemic. New technologies and jobs have opened up because of social distancing.
A Positive Outlook for Polk County
Grim predictions may deter many investors in various industries, but the real estate market in Polk County should be seen with a positive outlook. Many people are skeptical as the world re-opens its doors and allows closer proximity to human connections. Higher cases of COVID-19 may come about as people go more places and stores open back up. Click HERE to read a recent blog on the subject. It is not a matter of if, but rather a matter of when home sales will increase. As global efforts continue to take place and we battle COVID-19 health concerns, let us all try to remain positive in spirit.