In April 2020, the housing sales in the USA demonstrated a significant decline. But, according to Barbara Corcoran of Shark Tank, the potential for demand growth still preserves and we may soon see a recovery. Nevertheless, urban areas may not benefit from it at all. Barbara Corcoran provided some comments on the matter to the website thetradable.com, which covers financial news.
Generally, Barbara Corcoran, a famous American business lady, feels pretty optimistic regarding the growth opportunitities of the U.S. housing market and doesn’t hesitate to share her considerations publicly.
Barbara paid attention to the fact that though the housing sales fell considerably in April, the prices for homes actually grew by 4% on average. The sales decline was largely provoked by the agent’s inability to physically show real estate objects.
Obviously, if the price of homes grows, there is a demand for real estate. This simple fact allows Barbara to expect a recovery in the short term. At the same time, the rebound won’t concern all segments. Urban areas are the ones that suffered most from the decline of sales and may continue to experience it futher.
Companies in San Francisco, New York and Miami reported about a fall in real estate sales by 40%. This is the largest indicator compared to the other areas across the USA. The reason urban ares faced such drastic sales decline is because there is a spreading trend among people to relocate from densely populated regions.
Additionally, the new social distancing restrictions are increasingly perceived by people as an integral part of their life in the future. And it may take a lot of time as well as substantial efforts for them to follow the pre-pandemic patterns of social behaviour.
New rules imposed by the government regarding the people’s staying at home have already exerted an influence on a segment of commercial real estate as well. Within a moment, both employees and employers realized the advantages of remote work. Luckily, modern technologies allow to organize work from home in a very effective way. Employees enjoy more time with their families, while employers pay less for office rent.
Barbara pointed at some giant tech companies as an example. They allowed some of their employees to work from home for as long as they want. She also told about her view of remote work as an excellent opportunity to save money.
BarbaraCorcoran summarized that the real estate market is healthy at the moment and she is looking forward to the new growth opportunities for the industry.