As we begin to see signs that the COVID-19 pandemic is starting to wane, at least in the United States, the rubber is about to meet the road on two important issues facing real estate.

First, as the eviction and foreclosure moratoria start to be lifted, we will see whether the government’s efforts to avoid catastrophe in the residential sector were successful. There are early signs that residential evictions will be high. Whether the same will be true for foreclosures remains to be seen.

Second, commercial real estate is a mystery.  Vacancies in office buildings are already starting to slowly increase, as flexible work arrangements begin to become permanent. The hospitality industry is also seeing signs of tension. However, the commercial real estate sector appears to remain strong. More will likely be revealed as the long-term impacts of the COVID-19 pandemic become evident.