Tip Tuesday: What I Believe COVID is Going to Mean for the Market
I've been working with a client with very specific wants for a couple weeks now and they just can't find "the one". As we stood in the driveway of yet another "not quite right" home this past weekend, they asked me what I anticipated the market doing over the next couple of weeks. Usually I would say the market always picks up in the Spring and we should take our times because the right house was out there and would be coming on the market soon. Unfortunately, in these unprecedented times I just couldn't give a straight answer. This one is going to be a little darker than usual, so here's a picture of the beach for a quick pick me up before you dive in.
I tried and failed.
For the past several months we've had a lot of people interested in buying a new home but not a lot of people selling. We've had what we call a seller's market, because houses have been moving quickly and bringing a pretty good price.
With the current situation, open houses have gone virtual, new listings are few and far between and even showings aren't being requested like they were. This is when the market should be picking up and instead we're in this really weird standstill situation.
I did my research.
Let me tell you, there are a lot of different people making a lot of different predictions and no one seems to agree with each other. It was overwhelming for me, I can only imagine what your average buyer or seller is thinking or feeling right now, not having daily access to the updates and information.
I'll break it down.
Right now a lot of people are scared. Buyers don't know what is going to happen to their job and their ability to pay their bills, much less to get a new loan. Sellers don't want strangers and their germs walking through their house. We, myself included, fear the unknown and therefore cling to what we do know.
That said, after spending countless days quarantined, we're going to have a lot of people feeling that they just can't risk another period like this in their current home. They'll be looking for more space, less to take care of or just to get out of their current situation.
Also, let's be honest - we're going to have a baby boom in about 9-10 months.
And if I can take a second to be morbid (please forgive me, but it's the truth), if we have the death tolls predicted, we're likely going to have some empty homes coming on the market and some beneficiaries looking to sell a home they never wanted to own.
Oof, need a palat cleanser?
Now on to more positive stuff!
What does all this mean for the market?
Things are slow right now. That's understandable. But that's going to change. When we kick this thing, and we will, I predict that the market is going to explode. Everyone who was wanting to sell before this hit but not wanting strangers in their home will once again feel comfortable listing their home. Everyone who thought they might buy or sell in the next year or two has had a reality check and now knows that their current home is NOT where they want to be cooped up for days or weeks on end. I don't know when, but I do know the market is not only going to recover, but come back stronger than ever.
In the meantime, stay healthy, practice social distancing, and check out all the virtual open houses going on!
I tried and failed.
For the past several months we've had a lot of people interested in buying a new home but not a lot of people selling. We've had what we call a seller's market, because houses have been moving quickly and bringing a pretty good price.
With the current situation, open houses have gone virtual, new listings are few and far between and even showings aren't being requested like they were. This is when the market should be picking up and instead we're in this really weird standstill situation.
I did my research.
Let me tell you, there are a lot of different people making a lot of different predictions and no one seems to agree with each other. It was overwhelming for me, I can only imagine what your average buyer or seller is thinking or feeling right now, not having daily access to the updates and information.
I'll break it down.
Right now a lot of people are scared. Buyers don't know what is going to happen to their job and their ability to pay their bills, much less to get a new loan. Sellers don't want strangers and their germs walking through their house. We, myself included, fear the unknown and therefore cling to what we do know.
That said, after spending countless days quarantined, we're going to have a lot of people feeling that they just can't risk another period like this in their current home. They'll be looking for more space, less to take care of or just to get out of their current situation.
Also, let's be honest - we're going to have a baby boom in about 9-10 months.
And if I can take a second to be morbid (please forgive me, but it's the truth), if we have the death tolls predicted, we're likely going to have some empty homes coming on the market and some beneficiaries looking to sell a home they never wanted to own.
Oof, need a palat cleanser?
Now on to more positive stuff!
What does all this mean for the market?
Things are slow right now. That's understandable. But that's going to change. When we kick this thing, and we will, I predict that the market is going to explode. Everyone who was wanting to sell before this hit but not wanting strangers in their home will once again feel comfortable listing their home. Everyone who thought they might buy or sell in the next year or two has had a reality check and now knows that their current home is NOT where they want to be cooped up for days or weeks on end. I don't know when, but I do know the market is not only going to recover, but come back stronger than ever.
In the meantime, stay healthy, practice social distancing, and check out all the virtual open houses going on!
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