HAR chair weighs in on the new normal
Real estate is one of the many businesses that has changed dramatically in response to health concerns surrounding the COVID-19 pandemic. Many of the face-to-face meetings and in person property showings have been replaced by virtual ones as Realtors, buyers, and sellers adhere to appropriate social distancing guidelines.
Likewise, activities such as open houses, at least in the traditional sense, have become a thing of the past, leaving some to wonder whether they will ever fully resume.
It has been said that this is the “new normal,” and that some of the changes taking place in business and in life are likely to remain long after the health crisis has subsided.
So, while the real estate community has been quick to embrace digital technology and make other adjustments in order to stay operational, transacting real estate within this changing environment also has its challenges.
These challenges might be even greater for those who are relocating to Houston, because they are not able to truly experience the neighborhoods and properties that they are considering.
For example, typical questions about issues such as commute times and schools can only be answered based on prior conditions.
According to John Nugent, the 2020 chair of the Houston Association of Realtors (HAR) and a broker associate with RE/MAX Space Center, the local real estate community is working together to make the best out of the current situation.
“The staff at HAR has done a fantastic job of rolling out tools and encouraging agents to do virtual and online tours,” explained Nugent. “We have stopped promoting open houses through the MLS system, and we are giving agents tools that they can use to continue to serve their clients.”
He added, “We also have some wonderful tools for consumers to use. People who are moving here have the ability to go onto har.com and really see what the inventory is, and check out neighborhood drive times, and everything about a community. But, at some point they are going to have to get out and look at what is available out there.”
In terms of the available inventory of properties, Nugent said that the numbers are likely to drop due to the reluctance of sellers to have people come through their homes.
The number of buyers in the market will also likely decline due to layoffs, reduced pay, and general fears about job security.
But Nugent said that there is much to be optimistic about as well.
“People are going to move, whether that is for relocation purposes or just within the city, and they are going to need a place to live. The opportunities are there, and the interest rates are unbelievably low,” he explained.
And once the health crisis starts to level off and people begin to go back to work, Nugent said that he expects buyers and sellers to return to the market.
“There will be a pent-up demand, because people would be out in greater numbers than they are now trying to buy, list, or sell their properties. So, we will see sort of an avalanche of buyers getting back into the market. But there will also be a lot of people who lost their jobs or had their hours cut back and they’ve had to dip into their savings, which may cut into that a little bit,” said Nugent.
As far as the “new normal” is concerned, he said that he is hopeful that many of the changes that have been implemented, both socially and within the real estate industry, will be better for everyone in the long run.
“From the social standpoint, I think we’re going to be much more cautious about what we do and how we do it. We will think more about the people we’re around and how they are interacting with everybody else,” Nugent explained. “From a business standpoint, I think you will see more technology come into play in terms of how people go about buying and selling properties.”
All in all, he said that he thinks that the Houston market will come out of this crisis in fairly good shape.
And, while it’s important for everyone to stay optimistic, that it is equally important to be realistic and to understand why new guidelines are being followed, and how they impact the way real estate is being practiced today and likely into the future.
“Real estate is an essential industry, which has been established not only in Harris and in Galveston counties, but also now at the federal level. That doesn’t mean that we can just go about business as usual, because we have to practice safety for ourselves, our clients, and potential buyers and sellers,” said Nugent.
Michelle Sandlin is an awardwinning writer, journalist and global mobility industry expert. Her work is frequently featured in Worldwide Follow her on Facebook: www.facebook.com/ TheMichelleSandlin and on Twitter: @MichelleSandlin. Also visit “On the Move” at blog.chron.com/onthemove.