How is the Quarantine Effecting the Spring Market?
The market has shifted to a buyer’s market from a seller’s market in the real estate market. This is due to recent events that include the government lock down, recent job losses, and the downturn in today’s economy.
Supply and Demand
One of the fundamentals of the real estate market is supply and demand. When more houses (supply) are for sale on the market than there are people looking for them (demand), it is a buyer’s market and when there are fewer houses for sale on the market than there are buyers looking for houses, it’s a seller’s market.
In a seller’s market, the seller should be able to expect multiple offers for their home. Bidding wars between prospective buyers have even transpired. Seldom are requests made to the seller in a seller’s market for repairs and many times the buyer will offer to pay the closing costs. Homes have sold for more than the asking price in a seller’s market.
In a buyer’s market, the seller is very motivated to sell their home and is likely to accept offers with reasonable repairs and any reasonable offer. Buyers have the opportunity to get much more house for the money in this type of market.
With today’s market, things are changing a little. Right now, it is still a buyer’s market, even though many people are staying home more because of the current pandemic. But just like pandemics in the past, it will only take time for things to revert back to normal.
You can still check out houses without having to physically going to see them. Video tours can get you views on the inside so you can eliminate the houses that are not on your top five or ten list of favorite houses, saving actual viewing time for the best. Allow your agent to do the tours for you and talk with you while she is doing the tour.
There are several reasons people can be selling their homes right now. Maybe they are moving out of state, or they could be wanting to get out of renting and want to buy a home themselves. Or, it could be that they are behind in-house payments and are trying to keep from having foreclosure happen. If it is the latter, it is unfortunate.
However, as said above, this time will not last forever. We are seeing some homes, where a deal could be made, being pulled from the market. Some potential sellers have decided not to list until the pandemic issue resolves themselves somewhat. The market right now though is in favor of the buyer.
Not only is this a great time to buy a home, but mortgage rates are low too. While you have this opportunity to do something positive for your family’s future, do it. You will be glad you did when you are sitting in your own home and you have made a wise investment. Your professional real estate agent and you can end the deal with a wave instead of a handshake!