As unemployment rates rise, the crash of the stock market, and financial situations now being very uncertain, many are wondering what this means for the housing market. The supply has already been reaching low points in the market, as houses have been selling faster than they are being listed.
Due to the Coronavirus, 16% of Realtors have seen sellers take their homes off of the market. Open houses have come to a halt and buyers are much more wary in their financial security. How are these issues being managed?
Traditionally, spring is peak home shopping season. Families are trying to secure their dream home, so they are able to move after the school year is finished. Over the last three years, March has seen the largest spike in Real Estate transactions. This number has jumped anywhere between 30-50% over February’s numbers.
According to a study from Realtor.com, “In the 10 weeks prior to the Covid onset and through the week ending March 8, sales in this sample were up 15% year-over-year on average. In the subsequent two weeks (ending March 15 and March 22), sales were slightly down in the sample, 2.7 and 2.8% year-over-year for the weeks respectively. While still preliminary, the early reading of the last week of March ending March 29 showed home sales for this sample down 30% year-over-year.”
In light of these worrisome numbers, experts are predicting a comeback. This is called the “V-shaped” or “U-shaped” scenario.
In the V-shaped scenario, experts predict a sharp decline in home sales during the second quarter, but a quick recovery during the summer leading into the end of the year.
In the U-shaped scenario, it is predicted home sales will drop steadily into the fall but recover at the end of the year.
Real Estate agents everywhere are taking every measure possible to protect the safety of their clients. Consultations are now being offered via Zoom or Google hangouts. Home showings are being highly encouraged to be preformed via virtual technology, whether that is a Facetime call or 3D walkthrough technology such as Matterport.
If for any reason an agent does have to walk through a home, they are taking extra steps to wear gloves, sanitize, disinfect. They are also equipping themselves and clients with face masks, if available to them, and of course, staying 6 feet apart.
In our world of advanced technology, you would be amazed at what is available to us. Even home inspections and appraisals are being done remotely, with a virtual video conference to relay the information to all parties involved.
Buying a home during such an uncertain time is an extremely personal decision. If you have great job security at the moment, it could even work in your favor to start house hunting now. There is less competition at this moment and mortgage rates are still at historic lows.
Whatever your situation may be, it is important to know that there is a light at the end of the tunnel. We will get through this and make a comeback. We are in this together.