As we face the challenges of the COVID-19 pandemic, my first priority is the health of my clients and the communities we live and work. I’m committed to supporting my clients through this challenging time.
People are still out looking at homes, putting their homes on the market, writing contracts, and closing on life’s biggest transaction. In order to continue to provide the same high level of support, we realtors have had to adapt, adjust, and work together like never before.
Real Estate in Times of Uncertainty
Much of the news these past few weeks has been regarding the unfortunate events and circumstances caused by COVID-19. Day-to-day and hour-to-hour news is changing how we best address the COVID-19 matter.
As your trusted realtor, I’ll stick to real estate and defer to experts like the CDC for how to best address your health and safety. I don’t want to minimize the effect this current situation has on other aspects of life, but I wanted to offer some insights and reassurance regarding my expertise and experience – real estate.
You might be worried about your home value at this time of economic upheaval. That’s understandable and completely valid. The good news is that for most homeowners, the best course of action, as well as the easiest, is to do absolutely nothing. Just sit tight, be thankful that you have a nice place to gather with your loved ones, work from home, or even self-quarantine if needed. At times like this, it becomes abundantly clear that your home is so much more than just an investment.
Fortunately, real estate has historically proven to be a relatively stable and sound investment in times of crisis. For example, Dr. Marci Rossell, a leading economist who specializes in real estate, noted that the housing market remained stable in the aftermath of 9/11.
In the days and weeks following 9/11, there was a real sense of panic and uncertainty. Airlines completely shut down, conferences and events were canceled, oil and stock prices became hyper-volatile, and news stories predicted economic activity could grind to a halt for quarters if not years. Remember?
Fortunately, the shock that 9/11 delivered to the world economy was short-lived. It was a classic V-shaped economic deceleration characterized by a rapid decline followed by a rapid recovery. Unlike the stock and bond markets, real estate markets move slowly. At a time of economic uncertainty and volatility, based on past events it’s a pretty safe bet that real estate will remain a bastion of stability.
For those who are active in the real estate market currently and wondering how the pandemic will affect buying and selling:
Buying a Home
- We live in a digital age of real estate where information is abundant and available at your fingertips, without even leaving your home.
- This current COVID-19 crisis will actually slow down the market enough for an active buyer to have a greater opportunity to secure a home purchase, with less competition from other buyers.
- The recent rate reductions and questions about how the economy will impact a buyer’s purchase is valid. It’s more important than ever to have a trusted mortgage partner to help guide through these times. Fortunately, I can introduce you to an expert.
Selling a Home
- I’m a firm believer in cutting-edge real estate marketing technology. In times like these forward-leaning marketing tool and strategies are helping sellers even more than anticipated.
- My selling system incorporates the abilities for home buyers to view your home digitally in every manner possible. I know buyers are searching voraciously online and I will ensure your home stands out in their searches.
- In days and weeks ahead, we may see buyers making offers on well-marketed homes without physical showings. Virtual showings are becoming commonplace in today’s challenging time.
The Impact of Federal Reserve Actions on Mortgages
- The Federal Reserve has recently made some large interest rate cuts. However, it is important to remember that these cuts do not necessarily impact mortgage rates.
- We should hopefully see rate lock options stabilize. The question looms where mortgage rates will settle, but we should hopefully see the large swings slow down.
In these days and weeks ahead as news continue to come out about COVID-19, I want you to know that as your trusted real estate advisor I am on the front lines of the market. There are a lot of unknowns, but I will closely monitor the situation and am always available for any of your real estate needs, questions, or concerns.
In closing, please wash your hands and stay your distance from others. Give me a call. I welcome the opportunity to be of assistance!