The impact of a global pandemic can never be limited to a small extent as markets from all around the world are feeling the brunt. With rising prices and the wide nature of unemployment, things seem to be heading in the wrong direction. The same can be felt when you look into the property markets as the situation is not what any of us expected it to be. But that does not mean we give up and pack our bags. The best form of defence comes when we understand the impact and move ahead to implement changes. So to get you prepped for the initial part, here’s how COVID-19 is impacting the property market.
More Than a Typical Economic Downturn
In terms of assessments, economists and experts were quick to point out that the financial downturn that everyone is facing is quite different from what the world has witnessed. While past events can also be taken into consideration, the scale of damage is a bit different. The best example of the matter comes from the UK, where the Nationwide house price index for May fell to 1.7%. This is the largest decline in 11 years and thus, a serious matter of concern.
If the same line of analysis has to be done with the US, then the immediate problem seems to be unemployment. At a rate of 13.3%, unemployment appears to be sky-high. Since the impact of the same can be felt in all sectors, the financial market is also included in the list. But in terms of the extent of damage, the problem moves ahead to lie with landlords and banks. As house prices are rising, these two aspects or areas tend to be the most affected.
The Housing Market and the Office Property Market
A significant difference that the pandemic is bringing tends to come from the housing market and the office property market. Thanks to the need of the hour, people with jobs are being told to work from home as quarantine, and social distancing measures go ahead to be the top responses until a vaccine comes into the picture. Due to that, the demand for the housing market tends to be alive.
But the same cannot be told for the property market. People are trying to adapt to the current measures by making their home to be the work destination for all the right reasons. But that does not hint towards a state where things will only head to negative points. The aspect of bouncing back will always be a part of the picture as long as vaccine trials are being conducted. Hence, sit along with the vital sign of hope as things might change in the future.