Orlando, FL is a very popular city— and in a post-COVID-19 world, some home buyers may also see it as a great place to find a bargain.
Ever since the Coronavirus became a serious problem at the beginning of 2020, it’s had a dramatic effect on the country’s housing markets. The digitization of the home buying process made it easier for people to buy homes sight unseen, other than virtual tours.
Because many people shifted to working remotely, they were able to relocate to a different city. Many wealthier Americans even purchased 2nd homes in vacation towns just so they could wait out the pandemic.
As Americans are now starting to receive the 1st doses of the COVID-19 vaccines, it appears there’s an end to the pandemic insight. But just as COVID helped to fuel demand with home buyers, the return to normal life may have a dramatic effect in certain cities. It’s hard to predict which cities will experience a boom and which ones will suffer. One thing’s for sure… not all real estate markets will benefit equally from the end of the Coronavirus era.
Recently… the NAR [National Association of Realtors], compiled a list of the top ten real estate markets they expect to thrive in after COVID 19. Their list had places like Phoenix, Dallas, and Atlanta for example.
It was surprising to some Orlando real estate agents to see places like Des Moines, Iowa, and Madison Wisconsin on that list… and not Orlando. Realtors in Orlando, FL have very different opinions about how our local real estate market will look Post COVID-19.
Some feel that Orlando will experience a housing boom following COVID-19. Although Orlando is mostly known for parks and attractions, the Orlando real estate market remained strong despite pandemic forced shutdowns for much of 2020.
The reason for this is the diversity in employment, although many assume it’s mostly tourism-related jobs.
People in Central Florida and surrounding areas are, for the most part, still working which is fueling home sales in Orlando. The same holds for the city of Houston. Although the petroleum industry is a major employer, the City’s workforce was diverse enough to weather the COVID-19 storm.
Will Expiring Forbearance Agreements affect The Orlando RE Market
Some Realtors in Orlando believe that expiring mortgage forbearances will hurt the market. Many people are still in the term of their mortgage forbearance. Once the forbearance is over some Orlando homeowners will inevitably fall into foreclosure.
The question is… how many?? We’ve never seen such a high unemployment rate in our country and it’s uncertain how many people will return to how things were before COVID-19.
Many real estate professionals believe there will be a wave of foreclosures and Orlando short sales in 2021… We’ll have to wait and see.
In our current environment, the record low mortgage rates are creating opportunities even during the pandemic. Although whenever the economy bounces back, you can expect to see mortgage rates rise as well.
