Covid-19 has affected the U.S. real estate market, but real estate agents can still generate leads. Let us show you how.
The real estate industry has not escaped the coronavirus pandemic scourge. Like every industry, real estate has been hit hard. But all is not lost.
Agents can still generate real estate sales leads. We provide the best way for agents to do that.
Before getting into specifics, it’s important to have context. Keep reading for a list of some of the top cities affected by Covid-19. Then, read about a possible silver-lining before we get into how Home Value Leads can help any real estate agent generate leads.
Hardest Hit Real Estate Markets in the US
Check out a list, along with comments, of some of the hardest hit real estate markets in the U.S.
New York City
No doubt, the pandemic has ravaged New York more than any other U.S. city. What’s happened to real estate?
Many wealthy New Yorkers are leaving the city for the suburbs. Suburban agents are swamped.
But who knows how that will affect property in one of the most expensive cities to live in the world.
There’s good and bad in El Paso. Homes on the market are going quickly. However, less homes are hitting the market.
Less homes means less sales to go around. That means many El Paso real estate agents won’t have enough inventory.
For Pittsburgh, one of America’s great blue-collar cities, Covid-19 has impacted retail brick and mortar businesses and commercial property.
With most people working from home, there’s nobody to fill office buildings.
In April, sales of single family homes plunged. Although we can blame the coronavirus pandemic for much of that, the real issue for Houston in April were oil prices.
Oil plunged into negative territory. That had a massive effect on Houston real estate.
March new home sales fell off a cliff. It’s too early to determine if the trend continues. During the summer months, home sales in D.C. often rise.
We’ll have to wait and see if that happens in the Summer of Covid-19.
The East Bay in California, which includes Oakland, saw a dramatic decrease in homes for sale after Governor Gavin Newsom declared a stay-at-home order.
The week of March 16 saw 181 homes for sale. The listings dropped to 55 the week of March 30.
How the coronavirus job losses and stay-at-home orders have impacted home sales
We can trace declining home sales in most U.S. real estate markets to stay-at-home orders and job losses.
Stay-at-home orders sent people home to work. If anyone was thinking about selling their residential property, they had to think twice after the governor in their state imposed a stay-at-home order. Working from home is great unless you have no home to work from.
The other issue is the unemployment rate. 36 million Americans have filed for unemployment benefits. The current unemployment rate is 14.7%.
Some will soon find it difficult to pay their mortgages. This is especially true because 44% of those who have filed claims have yet to receive any unemployment benefits.
Multi-family landlords hit hard
A bigger issue for real estate could be what happens to multi-family owned houses. Many landlords rely on rental income.
That rental income could dry up, which would mean some rental property owners may have to foreclose. That’s a big issue because a healthy real estate market relies on houses selling at premium or at least fair prices.
If banks foreclose on property, they try to auction the property off to the highest-bidder. That cuts out real estate agents. At the very least, it puts a dent in a real estate agent’s commission.
Is there a silver-lining with home builders?
Housing starts fell 30% in April. But per Barrons, things could bounce back fast.
The reason why is because most job losses have happened to younger workers and those with low-paying jobs.
Apartment complexes could be in some trouble. Like in Pittsburgh, most U.S. cities might see a decline in commercial and business property sales.
But real estate agents could find it easier to generate leads for new homes. Two of the largest homebuilders in the U.S., Pulte Group and Lennar, have rising stock prices.
The price action in PHM and LEN stock suggests that new home sales should pick up this summer. That’s good news for real estate agents.
A home sale story to lift real estate agents’ spirits
Here’s a story that proves not all is bad. A financial adviser we know got a call from one of her clients. He didn’t have a ton of money in his investing account but enough for a down payment on a house.
The adviser, to her benefit, didn’t try to talk the client out of taking his money out of his investing account for the down payment. She told him the truth. She said, “If you really want a house, don’t worry about the market going up or down. Take the money and use it for your home.”
He did. Even though he would have made money if he had kept his funds in his investment account, he’s happy.
Here’s the thing, purchasing a home is a life decision. Money has a lot to do with it. But money doesn’t have everything to do with it.
Buyers exist. Where there are buyers there are always sellers.
Eventually, those who wanted to sell their homes will list their residences. Why? They will go back to work at least a few days out of the week. Going back to work should lead them to refocus on their previous plans, either upgrading or downgrading their living situation.
That means real estate agents can generate home sales leads. And because times have changed how real estate agents approach selling houses, real estate agents’ process needs to change. Check out how to sell houses during Covid-19.
How marketing on Facebook can help
Facebook remains the top utilized social media site in the world. Nearly 2.6 billion people use Facebook every day. Home Value Leads has developed a fantastic Facebook real estate advertising process.
Today, real estate agents should use HVL Facebook lead generation. Agents can get ahead of their competition by setting the groundwork for the summer.
With HVL Facebook advertising, agents will be in a great position to grab listings in their area.
Now is the perfect time to sign-up with Home Value Leads
Although things seem dire, the real estate industry might be at the end of the pandemic scourge. Lennar stock and PulteGroup stocks are rising in price. Those who want to purchase homes haven’t let the Covid-19 Crisis convince them not to.
As the U.S. reopens, real estate agents must put themselves in the best position to generate leads. That means signing up with Home Value Leads. Right now, agents can get a 14-day free trial.
Prepare for the summer. Sign-up with Home Value Leads today!