REAL ESTATE UPDATE DURING COVID-19
CLOCK REALTY GROUP
I hope this email finds you well and that your family is safe and healthy as we continue to shelter in place. As noted in our previous emails, if you or someone you know needs assistance, please let us know. We are here to help and have the resources to do so.
I have received many calls with questions regarding the status of the real estate market: Is business getting done? Are homes selling? Is this a good time to buy? Is this a good time to sell? Can I refinance? What should I be doing now to prepare my home for sale? These questions are all valid and I thought I would provide a quick update that might help relieve some concerns and anxiety.
First off, even though the volume may be lower, business is getting done and homes are selling. Many aspects of the real estate transaction from Appraisers, County Recorders to Title Companies, ARE considered essential services and transactions are moving forward.
For our clients that are looking to sell their homes in the next three to six months, we are advising that the necessary work to list your home be done now. The reason being that when market conditions return to normal activity levels, your home is ready to go. It is also a good time to get vendors to do work as construction trades are considered essential and appear to be more available then prior to Covid-19. We would be pleased to have a consultation with you to ensure the right improvements are being made. I believe the amount of pent up demand will be significant as we return to normal. Those sellers that are ready will be able to take advantage of a strong market with very limited inventory.
We do have a few clients that need to sell now for personal reasons. We have updated our marketing toolbox and have adapted to virtual marketing of homes. We are equipped with extensive video tours, 3d walkthroughs, detailed floor plans, virtual staging, etc. Even in these uncertain times, it is working, and properties are still being sold in less than 20 days on average, with multiple offers- surprised? Well, after seeing the inventory we are no longer surprised. There are only 600 single family homes on the market as compared to normal inventory levels in the spring of around 1,700 homes. Well prepared and marketed homes are still moving quickly. Many people still need to buy and these buyers are prepared to do so with cash in the bank.
This brings me to our buyers. We are not seeing a drastic decrease in prices, however, there are still deals to be had. That will remain the case as we move forward. For those willing to do to a little work and take on projects they will reap the benefits long term. The coming months will also be a good time to get pre-approved, look at investment properties and second homes. Mortgage rates are making home ownership of all types incredibly attractive.
For those of you looking to refinance we would be pleased to provide you with a good reference, for your specific needs. I personally just refinanced with a rate below three percent! This is a real silver lining for everyone carrying a mortgage.
With over 25 years of experience, I have seen the market bounce back from 9/11, the Dot Com Crash and the Great Recession of 2008. It is important to remember that this too shall pass, and we will be stronger for it. Consider the last two of three economic downturns, real estate in Silicon Valley, increased in value, in spite of a decreasing stock market. I believe this will be the same type of recovery.
I am here to help. Please do not hesitate to reach out with any questions.
To your Health!