A leading company focused on virtual transformation.
With the coronavirus sweeping, the country’s industries are grappling with the implications of recession and the rise in new cases.
After 3 fatal months, the epidemic has declined in peak coastal states. But the southern and southwestern states, as well as Arizona, Texas and Florida, have new epicenters.
According to a CoreLogic report, the “high unemployment rate” and the “recent increase in COVID-19 cases nationwide” will be the catalyst for a drop in space costs over the coming year.
While the report recognizes an accumulation in the value of the national average space in May, it said June would begin a monthly decline that would lead to a 6.6% drop in value until May 2021.
CoreLogic also highlighted peak slowdown markets over the next year: Prescott and Lake Havasu, Arizona; Daphne-Fairhope-Foley, Alabama; and Naples and Crestview-Fort Walton Beach, Florida.
“States like Arizona and Florida have faced the best typhoon of top COVID-19 cases and the upcoming collapse of the tourism market in the spring and summer, which has sufficiently reduced the need to buy homes to involve space value increases over next year,” the report says.
An increase in cases, the dismissal of the tourist market and the recession are circumstantial points that can also contribute to a downward trend in those markets. However, as CoreLogic explained, some would possibly be in better shape than others to deal with the storm.
Of the 100 meters tested through CoreLogic, the report found that 39% had an “overvalued” real estate market in May, 24% were “undervalued” and 37% were worth it.
Some subways may also perform better than others due to points like low interest rates and limited supply, the report adds.
Last June, the Washington Post reported that Arizona, Florida, and Texas had the new epicenters of the coronavirus epidemic. In early July, Florida reached a new record for daily cases of coronavirus, even dating back to the onset of the pandemic at New York’s former epicentre, with more than 15,000 cases.