This week, the USA started to see major reductions in infection rates for COVID-19. With more and more states opening up from lockdown and the property market open for business, here is a breakdown of what you can and cannot do towards buying your dream home over the coming months.
What is the situation across the USA?
While all US states have been affected by the pandemic, some states have been hit considerably worse than others. In fact, 50 percent of all US cases of Coronavirus have been concentrated around New York State, Connecticut and New Jersey, and almost 60 percent of all fatalities have been in these three states. Fortunately, the number of cases in the region appears to be reaching a plateau, and in states which experienced the earliest outbreaks, including California and Washington, there are positive signs that the disease has been suppressed. You can see an up-to-date breakdown of the number of cases per state, here.
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Most American states are open, with social distancing in place. Tada Images / Shutterstock.com
Where has the lockdown been eased?
According to a survey completed by market-research company IPSOS, all 50 US states have either eased or completely eliminated lockdown and social restrictions. Those living in the Midwest, the South and in rural locations are the least likely to still be adhering to social distancing policies, either because they were never in place or they were the first to be removed due to a low number of cases. The survey also found that while the majority of citizens are in support of common sense social distancing, only 49 percent of the population believe businesses and individuals will adhere to social distancing measures once the economy opens up again.
Moving forward, it is up to each individual jurisdiction to determine the measures that citizens must take to limit the spread of the disease and prevent another outbreak. For example, each location must outline guidelines in relation to how many people are allowed in spaces and once, and whether masks must be worn in public.
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Is there any news on a vaccine?
Just this week, Director of the National Institute of Allergy and Infectious Diseases, Anthony Fauci, commented that he was ‘cautiously optimistic’ about a potential vaccine created by Moderna, which is just entering its second round of clinical trials. A survey conducted by ABC found that 70 percent of Americans would want to be immunised if, and when, the option becomes available.
How has the US property market been affected?
While new listings and pending home sales saw a downward shift during March and April, the USA property market has proven surprisingly resilient, particularly in the locations in the Midwest that weren’t badly affected by the virus, and where no stay-at-home orders were issued.
The USA property market has proven surprisingly resilient.
Additionally, locations such as Seattle in Washington and Austin in Texas, have rebounded well, mostly due to their buoyant employment markets, particularly in the tech sector. Houston’s market is also performing well, as is Washington D.C, where home sales have increased by 150 percent after its COVID-related slump. If you’re considering investing in US property, second-tier cities such as San Antonio, Kansas City, Cincinnati and Indianapolis present excellent investment options.
The pull of places like Florida for overseas buyers remains undiminished.
Down in expat favourite, Orlando, property sales were down by 28 percent in April. However, the drop doesn’t appear to be on a similar scale to the 2008 housing crisis, and year-on-year median prices increased by 12.2 percent to $263,750 from $235,000 in April 2019.
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According to Chris Creegan, owner of Orlando-based Creegan Property Group, “The limited supply of homes caused prices to continue to increase and has really brought some of our stale listings to the forefront.” He also stated that, “We’re seeing buyers are a little more willing to write the offer site-unseen based on Facetime tours and virtual tours and I think it’s going to become more common as this drags on.”
