Now that we have surpassed the initial panic that overcame our nation back in March, we finally can take a more accurate look at how Buyer and Seller’s behavior has changed since the onset of the Coronavirus Pandemic.
When this all began, some families decided to put their Real Estate plans on hold for a few months until the uncertainty stabilized, and now that it has plateaued, we are seeing a strong Spring market, as predicted. And it’s not just us—Realtors coast-to-coast are reporting that people are moving forward with their plans.
Here are some of the contributing factors:
1. Sense of Security: Many people couldn’t fathom how selling/buying Real Estate was going to continue with quarantine in full effect. But thanks to innovative business leaders, shifting to an online format was seamless and enabled people to search for homes at the same velocity. Virtual walkthroughs have become a hit, signing contracts online made many in-person meetings obsolete, and added safety measures implemented during in-person tours (face masks, gloves, vigorous cleaning, social-distancing practices, etc.) gave families a sense of security. People are comfortable enough to jump back in now that they are sure they are being protected against COVID-19. In fact, 66% of Realtors have reported an increase in the demand for virtual showings, which means this strategy is working (Feeny, 2020).
2. People Need to Change Their Living Situation: Despite what is going on in the world, people need to change their living situation. A new baby on the way might require a larger home, just like going into retirement might create the need to downsize.
3. Low-Interest Rates: Many people flooded the Real Estate in the last couple of months to take advantage of their increased buying power. Families who were secure in their jobs but weren’t thinking about upgrading their home this year, decided to jump in so they could utilize the low-interest rates.
On average, agents are estimating that inventory remains at a 3-months supply level, which is well within seller’s market territory, and will cause home prices to remain steady (Feeny, 2020). With fear subsiding, homes in high demand, and buyers ready to go, the Real Estate market is well on its way to having another successful season! In conclusion, Buyer and Seller’s behavior is showing the same trends as years prior, with the number of buyers remaining high despite many Americans losing their jobs. As we mentioned before, this can be attributed to the fact that people still need to move due to their personal circumstances, as well as the low-interest rates sweeping across mortgage companies. What’s incredible is that despite current circumstances, 13% of Realtors have cited that their business is actually growing (Feeny, 2020)!
If you were planning on buying or selling a home this season but are having doubts, we encourage you to fear not! Our market is thriving, and The Reynolds Team specifically has implemented both COVID-19 Buyer and Seller Protection Plans to ensure your safety and satisfaction. We are here to serve you through these times and have had great success helping families buy and sell their homes during this Pandemic. Reach out to us at 703-297-4251 to start a conversation about how we can get you to the finish line on your home sale as well!
Sell Your Home Virtually GUARANTEED or We’ll Buy It!* No Need to Leave the House, No Showings, Everything done 100% Virtually. Give us a Call at 703-297-4251. Click this LINK to know more.