Publisher's Note | November 2020

The COVID-19 Real Estate Boom

By Publisher Robert Orso

For many or maybe most Americans, the past few months of pandemic life have been incredibly challenging and stressful. While some types of businesses like hospitality, retail and some bars and restaurants have suffered loss or closed, other segments of business have benefitted and even doubled their business due to the COVID-19 shutdown. At least along the Gulf Coast, if you were an Auto Dealership or Boat Dealership you nearly ran out of inventory. If your restaurant was poised for take-out, you have had a good year.

Be thankful that you are in the real estate business! Every top agent that I have spoken to in the past three months have told me that they are busier now than any time in their careers, going back as far as thirty-eight years. But why the boom? I have asked some top agents and researched that question. Here is what I found.

1. As all of you know, we are in a seller’s market, especially in Baldwin and Mobile County.

2. Historically low interest rates spurred by the pandemic have had a nationwide effect and assisted first-time homebuyers in capturing their dream.

3. Many people have purchased second homes as an escape from a less desirable large city.

4. So many have been working from home since March and many companies have made the decision to continue remote employment arrangements indefinitely. Why not work from the beach or some other more rural and desirable place on the Alabama Coast?

5. Some, who are heavily invested in uncertain segments, like the stock market, have moved money into real estate primarily along the beach. Of course, they did not know Sally was coming.

6. Unrelated to coronavirus, the civil unrest, protesting and rioting in the larger cities have inspired people to move to more rural, politically stable, and safer areas like ours.

Except for my college years, I have lived here all my life. I love this place. In my past work life, I have visited and conducted business in about thirty percent of the nation’s largest cities. Most of them are fun places to visit but I have not experienced any that I would want to live in.

How long will this boom last? No one knows. What else will happen in 2020? I wish I knew. But the best answer is to expect good things and be prepared for anything.