The Post Pandemic World of Real Estate – Chapter 1
This year reads like a dystopian novel. Who would, in their wildest dreams (or nightmares), have ever believed 2020 would become synonymous with the word “pandemic?” Who could have guessed our lives would be forever changed and we would witness a virus so destructive that it would virtually paralyze our schools, businesses, and economy?
I would bet no one.
Yet here we are, and we are surviving. Little by little, as Americans have been known to do, we fight our way back and become stronger than ever. One indicator of the fight is our local housing market. It’s hot, “On Fire” and reminiscent of 2004/2005 time frame when inventory was low, and buyers were lining up to buy/invest in “anything.” However, unlike the rush of 2004/2005, we are not seeing “hocus pocus and smoke and mirror” loans. This time, interest rates are so incredibly low that the market has opened to people who never imagined they could own a home.
Understandably, not everyone is in the same place. This has been a remarkably tough year for so many. However, if you were fortunate enough to have weathered through layoffs and furloughs, you may just be lucky enough to join in on the chaos of the buying world. Those who have taken the leap are scouring the internet, third party housing sites and even posting their wish list on Facebook in the hopes that someone sends them the insider scoop on a property that has yet to hit the market.
What about prices? For now, prices are stable and there is not yet enough history to substantiate huge increases. But remember the theory of “supply and demand” and you will understand just how many of our listings are likely in multiple offer situations the minute they hit the market.
In April, sellers were taking wild offers, and the fear of the unknown was great. Fast-forward a few months and though we are still in the thick of it, sellers are less fearful and are banking on their home’s worth. Buyers, perhaps more than ever, are realizing the importance of owning a place where they feel safe and comfortable. Lowball offers are the exception and not the norm.
As the year goes on, I promise to keep you abreast of the latest market trends and happenings. Hang on tight, this is one crazy ride!!!