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How Coronavirus (COVID-19) is Going to Impact the Real Estate Market in Dallas, TX

Eileen Petroski • Mar 26, 2020

How Will the Pandemic Affect the Local Real Estate Market?

Sell My House Fast Dallas TX
The Dallas, TX real estate market has long been experiencing great activity. However, 2020 is shaping up to be an unpredictable year – the COVID-19 pandemic has swept the nation, leaving many things uncertain. Sharp fluctuations in the market as a result of the outbreak have had widespread effects on nearly every area of the economy, including real estate markets. Among the areas most affected could be areas with home prices that are considered overvalued. Dallas falls into that category, as home prices have risen faster in recent years than income levels. This could result in a drop in home prices, as well as other effects.

It bears noting, however, that we don’t know exactly how this will pan out, as nothing like this outbreak has happened in any of our lifetimes. 

What We Know So Far

The Dallas real estate market is considered overvalued; prices have risen at a rate that is not parallel with income levels. This disparity, coupled with the downward turn the economy is already taking because of the coronavirus pandemic, could have dramatic short-term results in terms of home values and real estate costs. It’s possible, due to job cuts due to the outbreak, that some people will lose their homes; however, experts agree that the government is likely to bend over backwards on forbearance. The effect of the coronavirus depends on how quickly it can be kept in check. The sooner it can be eradicated, the more likely that housing demand is to come roaring back as usual. However, if the effects of the pandemic last for six months or longer, things could take longer to bounce back.

What You Can Do

For now, the most important thing you can do is stay calm. The situation with the coronavirus has in many instances put things on pause – stay home if you can, and concentrate on staying healthy. We have yet to see what the true effect of the pandemic will be; while things are uncertain now, markets will likely stabilize when we gain more clarity on the situation. While the effects of this pandemic could be different from past precedents, previous outbreaks such as the swine flu, SARS, and the bird flu also generated short-term market fluctuation and ultimately stabilized before much time had passed. 

The key to stabilization will be job and income recovery across the board after the worst of the pandemic is over. The faster that COVID-19 is dealt with, the faster that recovery is likely to be. 
For now, remain calm and focus on doing your part to decrease the spread of the virus. The sooner this pandemic can be eradicated, the sooner the market can begin to recover. Though it may take some time, the local real estate market is likely to see its former success once again.

If you have been affected by the outbreak as you attempt to sell your house or search for a new home, feel free to reach out to our professionals with any questions.
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