Since Pennsylvania does not consider real estate to be an essential business, realtors are not allowed to have in-person open houses or private showings. With our lives becoming increasingly reliant on virtual platforms, real estate agents have also begun to make the switch by swapping in-person tours for virtual ones. Even though this sounds less appealing than regular tours, realtors have been doing everything they can to make these tours as interesting and interactive as possible.
Some realtors have been using drones during live meetings to show properties off from a distance, and some have even been showcasing open houses on a live Zoom call. In some instances, realtors have also used virtual reality headsets to give tours to people interested in housing. With the coronavirus showing very little signs of slowing down, realtors will continue to adapt virtually to continue their operations efficiently and effectively.
With Philadelphia’s three major schools (Drexel, Temple, and UPenn), thousands of students generally rely on housing within their school’s areas. Now with universities transitioning to almost fully online, students are considering whether it’s worth it to stay home and save money or sign a new lease to get away from their parents.
Since residential housing such as dorms are limiting capacity on the number of students who are allowed to move in, more students are now on the fence about moving into off-campus housing. This has led realtors to adjust by either dropping prices or including utilities in payments to attract students who are still considering whether they want to move in or not.
While the overall housing market is going to see a drop in buyers and renters, housing located closer to the city and some of the more densely populated areas are definitely going to see a drop in prices. Expect to see an increase in younger people moving to suburbs such as Manayunk and Bryn Mawr which means an increase in real estate for areas outside of the city. But one can expect with the exodus of people, the previously popular and expensive housing around Center City will see a drop in some of their prices. Especially with job opportunities being remote, people are looking for affordability rather than commutability.
In relation to the point above, people have been going a little stir-crazy. After nine months of living in apartments that are either small or with roommates, people are considering upgrading to larger apartments or houses to accommodate for more personal space (and get away from the roommate who never cleans or does the dishes). Overall, the real estate market is expected to see a drop in sales and renters for this year, but once leases start ending, expect to see an increase in people searching for more space and room specifically in areas that might be underutilized such as Manayunk and Conshohocken, leaving more available properties in areas that others might be interested in (Fishtown, Northern Liberties, and Fairmount to name a few.)
Another way COVID has impacted real estate is on the commercial side. With more companies finding it cheaper to stay remote, realtors are brainstorming ways to fill up vacant spaces. Companies are starting to find it cheaper just to stay online so now realtors are challenged with adjusting to the new landscape. Some have been adapting by creating more secluded areas in office spaces to lower the risk of employees contracting COVID while still appealing to businesses looking for space.
However, this presents a unique opportunity for businesses who are looking to move into a new space, as there will be availability and better prices than in a normal market.
For more questions about rentals and purchases during COVID, Please contact GM Holdings at (215)-425-4475.
