As the world adjusts to life after many pandemic-related restrictions expire and change, it will become apparent how COVID-19 changed the way people make important decisions. This is also true for both commercial and residential real estate decisions. The pandemic changed the way people live, work and shop, and these changes are likely to have a permanent effect on the market in Tennessee for years to come.
Residential real estate trends
The residential real estate market is expected to remain strong, with home prices high. As buyers look for homes outside of high-density areas, suburban sales will be consistent. However, competition among buyers will be significant as supply will remain much lower than demand. Forbes estimated that in 2020, housing supply dropped by more than 50% due to several factors.
Commercial real estate trends
With the increase in remote work, commercial properties may not see higher demands. Many businesses find that they do not need as much space, but other companies need more warehouse space as online shopping increases. Investors may be more cautious when considering the purchase of certain types of commercial properties and buildings.
Smart decisions are key
When buying a residential property or investing in commercial real estate, caution and prudence are key. There is significant benefit in working with an experienced attorney who can provide guidance and insight into current real estate trends, as well as how these trends could impact the benefits of a sale, purchase or lease. Smart decisions based on research and due diligence decrease the chance of financial loss or other complications.