PHOTO FROM 123RF
Corona Market Overview Where is the market moving? By Jenny Gonzalez
T
he impact of Covid 19 was felt in most areas of business, right from the Stock market to the Real estate market. Effects experienced during Covid 19 pandemic are compared to the great recession of 2008 to 2009, when there was an economic and financial downturn. Consequences will be there even in the long term. For instance with stock market part of Romania experienced a downturn while the Europe stock market had positive results. In the real estate market, the number of homes for sale in the market reduced. Real estate was significantly affected due to health issues and lockdown. Likewise, many sellers disliked the idea of inviting strangers into their homes. Work from home orders led many to create office spaces in their places of residence too. Other aspects that led to the decline of homes sold were the fact that many people lost their jobs during the period.
REASONS WHY THE HOUSING MARKET FACED A DOWNTURN The real estate market decreased sharply in the first few months after Covid 19 was declared a pandemic. Most sellers who already had put their homes on the market delisted them. The high cost of building materials decreased the number of new homes by more than 40%. All these factors led to low inventory levels at the time. Buyers also reduced during the period. It was also evident that online home search was relatively lower than in previous years. Several months later, in an attempt at economic recovery, local authorities issued lower mortgage rates to maintain steady home prices during the pandemic. WHERE IS THE MARKET HEADING? The demand for homes increases while supply is low. AUGUST 2022 | 67
