How is the U.S. real estate market responding to COVID-19?
The housing market has been resilient in the face of the COVID-19 pandemic. Manager of Real Estate Services Kelly House explores why in this Remote Relo Tip Tuesday.
Complete transcript: “Hello, I’m Kelly House, Plus’s manager of real estate services, and welcome to our remote edition of Relo Tip Tuesday. Like many of you, we’re currently working from home as we do our part to help slow the spread of COVID-19. Our question today is, ‘How is the U.S. real estate market responding to COVID-19?’
In general, real estate has been pretty resilient during this time, likely because real estate has been deemed an ‘essential service’ in most states, meaning all facets of the transaction are still moving forward, including inspections, appraisals, listing process, closing and going out to see properties with an agent. All while adhering to the proper social distancing guidelines.
What we’re experiencing during this pandemic is that fewer sellers are electing to list their home, but buyers are still very active in their searches. Sellers who do elect to go to the market are doing so with less competition, but buyers are eager to lock in their purchases and take advantage of record-low interest rates. Therefore, it remains a seller’s market in most locations.
So is now a good time to sell a property? The short answer in most markets and price ranges is ‘yes.’ Sellers that are comfortable listing during this time are coming into the market with reduced competition, but running into an active buyer pool. Although agents are starting to warn of some ‘shadow inventory’ that may be building. Shadow inventory is when homes are likely to come on the market within the next 60 to 90 days, but are waiting for the stay-at-home orders to be lifted. Agents then warn sellers that are waiting could run into increased competition later this summer and fall.
Ultimately, the best way to determine if now is the right time to list a home would be to have comprehensive market assessments completed by relocation-trained agents. They will take a look at the market and provide the correct data for an informed decision to be made. As always, stay safe, and thanks for watching.”