There is a lot of talk about the future of real estate at the moment, but the truth is that little is known, since the current situation is unprecedented. We are not in an isolated economic crisis, nor are we in a real estate bubble as we have been in the past. It's not Brazil, the Real or the USA.
The moment is one of a worldwide crisis, without rules or definitions, affecting the most diverse branches and each one in different ways.
What I put is based only on my personal opinion in articles and news, data from NAR and Realtors Magazine, ORRA and others. Also based on what we are feeling, receiving from contacts, demand and activities in these last months.
For local residents, there are two extremes: interest rates are lower than they've ever been, so for those who are employed and somewhat secure, now is the time and the market is welcoming these sales with open arms. Those who have lost their jobs or are not so secure are postponing their house-buying projects, or extending and modifying existing contracts.
For international buyers, more specifically Brazil, we also have multiple scenarios: investors who had already put their capital in dollars are taking advantage of the moment, since opportunities always arise in times of crisis and these sales are going from strength to strength. Whether it's the residential housing market or the vacation home market, we've seen a huge increase in the number of homes on the market. Those buyers who were starting the process, or were obtaining financing, are opting to wait a little longer, not least because the banks themselves are proving to be a little inconsistent in their financing and requirements at the moment.
If we take into account that the economy here is reopening, many people are returning to work and tourism is gradually picking up again, Orlando's expectations are enormous for receiving visitors, given the necessary precautions and new health rules. Vacation homes are already returning, the parks have gradual opening dates and the market will continue to reheat.
I think the big difference over the next few months will be that construction companies will be more flexible with their procedures and will have greater incentive to resume the high level of sales they used to have. Buyers now have a bit more negotiating power. Good news! Systems are less rigid and a trend towards change and modernization that was already necessary had to happen quickly. Another piece of good news! There may be a drop in values, but I don't believe there will be a huge devaluation like in previous years, but this is definitely the time for those in the market to be alert and ready to close a deal, as opportunities will arise.
We are monitoring trends, figures and valuations depending on the area, the profile of the property and the amount to be invested so that we can have a more micro view of each client's profile.
If you'd like more details on numbers, sales, financial return in a specific area, or just want to understand the options and characteristics of each, please contact us. We'll be happy to help!