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Home sales survives in the pandemic

In the midst of the health crisis due to the pandemic, some banks reduced mortgage interest rates, increased the number of properties on offer, the use of technology to take virtual tours of homes was intensified, and the use of photographs was used to promote properties.

As a result of these practices, the sale of housing was not stopped in its entirety by Covid-19, although prices rose 6.4% and mortgage transactions fell 20% in the first half of the year compared to the same period of 2019, from according to data from the Federal Mortgage Society.

There were at least three financial institutions that lowered their mortgage rates below 8% and those who already had a loan were given extensions, said Fernando Rico, secretary of the board of directors of the National Association of Valuation Units AC (ANUVAC).

It was “surprising” that in June the sale of housing, both new and used, recovered throughout the country compared to the fall seen in April, although it must be considered that each state behaves differently; the greatest dynamism occurred in the north.

Despite the complex economic situation, the number of individual loans for new housing increased 5.2% from January to May compared to the same period in 2019, according to the National Chamber of the Housing Development and Promotion Industry (Canadevi).

There was commercialization, despite the fact that in the first semester of the year the production of new housing registered an annual contraction of 12.9% and that the start of new construction decreased 20%, highlighted Rico.

In addition, during the pandemic the home search and purchase process was so streamlined that it is now possible to carry out a transaction 100% digitally and not in person, said Leonardo González, Real Estate analyst of the real estate portal Propiedades.com.

In the midst of the health crisis, the sales automation processes allowed for faster closing of transactions for pre-sale real estate developments due to the price adjustment during negotiation, which ended up benefiting customers. In addition, the listings of houses that are offered for sale or rent increased 30%.

González explained that Covid-19 accelerated changes, because before, people made tours of the streets of the neighborhoods in which they were interested in living and, depending on the signs or advertisements, they visited the properties they liked.

However, “today it is very different, because this industry evolves alongside the use of the internet and the flexibility of better gadgets and cell phones,” he added.

For the population vulnerable to the coronavirus, viewing houses through the internet “is a process as common as it is complicated. Looking for a new home is almost a national sport, not only in Mexico, in all countries. This has benefits, but also problems ”, González mentioned.

One of the most frustrating points for buyers is that sometimes the photographs that are published do not correspond to the preferences and interests of the users who are looking for a home, despite the fact that the hard data of the offer is reasonable.

Therefore, we must be aware that “graphic information is one of the main challenges of real estate platforms,” ​​he added.

If the interested party likes the home and meets their expectations, then the next phase is chained to carry out procedures, certifications, appraisals and specify the sale process, González explained.

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