Saad Ullah
Barbara Corcoran, an American businesswoman famous for being one of the main hosts of Shark Tank, recently shared her opinion about changes in the U.S. real estate landscape.
The U.S. real estate is doing fine
According to Barbara, despite the significant decline in the housing sales in April 2020, the prices for homes have increased by four percent on average. She stated that the major reason behind the drop in sales was the inability of agents to physically show houses.
The climb in prices indicates that the demand for real estate remains, which is why Barbara expects the real estate market to rebound soon. There is a caveat, however, that urban areas aren’t likely to see such a rebound.
Urban areas suffer the most
Barbara highlighted that real estate sales in New York, Miami, and San Francisco are down by around 40 percent, much higher than in other areas of the country. She stated that urban areas currently suffer the most because people try to relocate away from densely populated places.
The recent regulatory restrictions on social activities sink in people’s minds and many of them start to perceive them as a part of their future lives, Barbara states. It will take substantial time for people to get back to former ways of thinking.
The new paradigm of staying at home will also reflect on business properties. Employers and employees across the country gradually realize the benefits of working remotely. Workers get more time with their families and business people can save on office rent.
For example, Barbara mentioned that major tech companies already let their workers perform their duties from homes indefinitely. She also shared her own experience of positively viewing remote work as a potential opportunity to cut costs.
All in all, according to one of Shark Tank’s leaders, the housing industry is mostly healthy. Still, there are some concerns about urban areas and commercial real estate.
Saad Ullah
