Should we prepare for a real estate rush after Corona?

Now that the Security Council has spoken out about an “exit strategy” and that new visits to sales and rental properties will be possible from 11 May 2020, it is time to prepare for the restart and think about that “momentum”….

Whether a rush on real estate is likely to happen has been said a lot, but it is not inconceivable that, after weeks of abstinence, there will be some form of “decompression” among prospective buyers and investors. Of course there will also be people who have to postpone a purchase due to the Corona crisis. However, prospective buyers who do have sufficient capacity and have had to put away their purchasing plans due to the Corona lock down may be eagerly waiting to visit properties again.

At the same time, the stock markets have been hit hard and have lost the confidence of many investors. Many investors may therefore flee to “real estate” as a safe investment. We even hear here and there prospective buyers say that the Corona crisis is the ideal time to buy because it is believed that there will be less “pressure” on the market and therefore more favorable prices to negotiate…. But if everyone sees the Corona crisis as an “opportunity” and enters the market, there will of course be no cooling of the market.

 

The fact that we should not immediately count on a cooling is proven by the sale of the new construction project www.star-view.be that we (Kasper & Kent) launched in full crisis on Monday 20 April 2020 and of which 5 days later (25/04/2020) already (purely from a distance) 6 apartments have been sold and 3 were in option.

All these elements therefore suggest that the re-admission of site visits will certainly not be quieter on the real estate market. Perhaps even busier, given that the number of prospective buyers has been piling up for two months (buffering). On the other hand, a lot of homes will probably come on the market when it is restarted. Because on the supply side, too, potential has accumulated for two months.

In short, a real rush may not come, but whether it will be much quieter, is highly doubtful ....

If you plan to sell your house yourself, please know that we can already prepare for pending new site visits and organise a sales file and thus use time efficiently. For example, we as brokers are allowed to make professional "contactless" trips, for example to make valuations and / or to make photos, etc .... We can also do a lot of administrative tasks and mandatory searches in the period up to and including May 11, 2020. Consultations with owners, buyers, etc ... can be done remotely via telephone or video call. If you are looking for a quick start to your sale, it is certainly possible to switch already ....

Feel free to contact us for an introduction, estimation or all your other real estate questions!