I’ve received countless calls this week about the state of where the real estate market may be heading, so I wanted to give a quick update to let you know there are some massive opportunities that lie in this current situation we’re in. Just a quick insight into our business…we sold 98% of our listings over the last 7 days. Crazy, right?
What’s driving this?
Fear. But not the type of fear most of the country is in right now. Buyers are afraid they’ll miss out on ridiculously low interest rates AND fear that if they have to be holed up in their home, they want to be in a place they enjoy. These buyers may have been looking at homes for months, and our circumstances have prompted them to finally pull the trigger.
No, not toilet paper … it’s a house! Contrary to what one might think, new buyers are coming out of the woodwork. Luckily the social exposure level is at a bare minimum throughout the purchase process—just the agent and the clients for the most part.
Herein lies a huge opportunity for Sellers. This trend will force available housing inventory way down and drive buyer demand way up. High demand and low supply equals statistically higher sales prices and shorter days on market. Understandably, many sellers who were ready to list are now choosing to wait a few weeks to see what happens with the economy and housing market. However, sellers who can stomach it and take the proper precautions will enjoy shorter days on market and a higher sales price.
Is the lending industry going to crash?
Seasoned loan officers I’ve interviewed tell me that the system is actually overloaded. What I mean by “overloaded” is that they are seeing triple the amount of refinances and purchase loans than the normal volume. Worth noting that more refinances = less future housing inventory and less competition. Also worth noting—newly written sales contracts might see closing delays as a result, so there will be patience required.
Is it possible our economy could crumble into an abyss and eliminate current stability? Perhaps. But the difference between our current economic situation and that of 2008 is that this situation was not caused by a lending meltdown. This virus is temporary; it will run its course, and when it does the economy will begin to rebuild.
If you or someone you know has been on the fence about selling, I hope this blog was helpful. Weighing your options and making a decision that feels right is important. Don’t hesitate to shoot me an email or give me a call if you’d like some help with your decision making process.