(Disclosure: This video does not portray the political views of R.E. Shilow Realty or any of it's
associates. This video clip wasd used because it is one of the best descriptions of the affects
of the Corona Virus on the current real estate economy.)
Real Estate Overview
It is finally about to be over! COVID-19 (Corona Virus) has been a real thorn in our side mentally and economically. As the saying goes "nothing can hold us down." That saying can not be captured more in America than the real estate economy.
The one aspect of the Corona Virus on real estate that we noticed here in the Mid-Atlantic is about 20% of all properties for sale were taken off the market. Never the less, real estate sales have remained consistent with properties still selling within 30 days, and buyers outbidding each other. It is a phenomenon that no one could have predicted.
A Beautiful Phenomenon
Real Estate buyers have stayed in the market and real estate sellers are still selling. Interest rates are at the lowest ever in history and job losses are amongst industries (restaurant, retail, and hospitality) which statistically are not a large part of the pre-approved home buyers market. What this means is, there is no slack in the market. Only the most committed people are participating. Real estate sellers that have the most confidence in the presentation and price of their properties and real estate buyers that still have good-paying jobs and enough confidence to shake off the virus scare and view properties to purchase. In the Mid-Atlantic, the real estate sales have remained consistent with properties still selling within 30 days, and buyers outbidding each other. In states with total real estate shut down real estate sellers are still placing their properties for sale and the norm has been for real estate buyers to contract properties sight unseen with inspection contingencies for after the lockdown gets lifted. This mixture equals consistent real estate sales! This is also a large sign of the underlying strength of America's Economy!
For the 20% or so of sellers that have taken their properties off the market there are more than 25% of pre-approved buyers that are still in the market but are waiting for the first signs of the economy to open before they pull the trigger. Best of all, those buyers have had eight weeks to research the market and now have a good idea of what they are going to shoot (buy) as soon as the economy starts to open. And it is going to start showing the first signs of major openings next week. What does that mean for real estate? It's Over! There is going to be a rush of buyers and not enough sellers within the next 12 months. The full force of pinned up demand is going to be released. We are going to see a spike in sales, and sale prices!
If you would like to find out details of your property's real estate market or would like to talk more in-depth about real estate, finance, and the economy. Please give me a call, email, or text.
To Sell Your Property you should start here with an in-depth value report: https://www.reshilowrealtyinc.com/cma/property-valuation/
Ryan E. Shilow, President
A Johns Hopkins Master of Real Estate