Lots of people assume that the COVID-19 has all but destroyed the real estate market. Why..well because who would want to sell or buy a house when there is a pandemic? Let's dispell these assumptions one by one.
1. It's a terrible time to sell your home
It is really a great time to sell your home. Right now there is pent up demand for homes especially here in the San Ramon market. And while some sellers are fearful of putting their home on the market, yet those that are still moving forward are quite pleased with the results. With so little competition those sellers who are willing to stay with their plans are receiving multiple offers and many over list price.
And although the market is booming now, it may not remain that way for long depending on what unfolds over the next several months.
2. Home prices must be going down
According to the NAR, the national median price for single-family homes grew 7.7% during the first quarter of 2020. This data also shows home prices are growing faster than pre-COVID 19. The biggest reason “record low mortgage rates” mortgage rates at 3% or lower. I am not sure when rates were ever this low, maybe 50 years ago?
3. Buyers are holding off on home purchases
The U. S. homeownership rose to an almost 12 year high in the second quarter which is the highest since 2008's third quarter, according to a recent study by California Association of Realtors. The COVID pandemic is not holding people back from buying. As a matter of fact, the number of closed sales in San Ramon for July 2020 was ahead of 2019 by 20 units.
Mortgage interest are the main cause of the current% for the first time in 50 years, to 2.98% as of July 16, according to Freddie Mac.
4. Homes can't be viewed in person
As states issued stay-at-home and social distancing mandates to stop the spread of COVID-19, many in-person home showings and open houses were put on hold temporarily in favor of virtual home tours. But by now, most of these restrictions are being lifted across the country so homes can be viewed in person—and real estate agents are taking extra precautions to protect buyers and sellers.
We have specific guidelines in place to ensure the safety of both buyers and sellers as to how we conduct in person showings. And the technology we are using to show homes virtually is bringing the most qualified and interested buyers to set up an appointment.
5. It is taking much longer to sell homes
False. Our average time on market (every market is different) is less than 20 days and some homes are selling before going on the market.
As mentioned earlier, this trend may change depending on how long it takes to get back to "normal". With over 4 million mortgages in forebearance and people still out of work, next year may be quite different.