Coronavirus has definitely changed our day to day lives. From wearing masks, to sanitizing often, to following the 6 feet rule, it has shifted everything. Another thing that it has shifted is real estate. Having to take certain precautions with clients and dealing with the financial hit to our markets has been an adjustment. Keep on reading to understand how Coronavirus has changed how we do business.
IT IS A SELLER’S MARKET
A seller’s market is defined as an economic situation where there are less sellers than there are buyers, so sellers can keep their house prices high due to supply and demand. Prior to coronavirus, it was the other way around. Now with the limited inventory, when buyers are ready to get their next home, there isn’t as much to choose from. Real estate agents have voiced that they’re still working with a particular client because they’re waiting for more inventory to come out on the market. Regardless, there are still many great houses for sale out there, so don’t let this stifle you from looking for a home.
LOWER INTEREST RATES
The interest rates for home loans are at a record low. This is due to the Federal Reserve dumping money into the mortgage finance system after cutting short-term loans. You can now get a mortgage loan with interest rates as low as 2.5%, whereas before Coronavirus, it didn’t fall below 3%. This means that you would pay less over the life of the loan. Nobody knows for sure if these low interest rates are here to stay, but they will probably stay for now. This has also created more demand for lenders to make new mortgage loans, and due to the competition of this, it may push rates even lower.
MORE FOCUS ON VIRTUAL TOURS
From Matterports to listing videos, there is more of a need to do virtual tours. Granted, there is nothing like being there in person. You can see the homey kitchen and spacious master bedroom through a video, but you can’t get a hands-on experience of them. You can still go in and tour properties, but due to Coronavirus, some people feel more comfortable doing this option, which is perfectly ok. In result, real estate agents that use these tools to advertise their listings are getting more traffic and longer watch times.
CHANGING WHAT BUYERS WANT
What buyers want and what they look for in the description of a home has changed. For example, may real estate agents are using keywords such as “disinfected,” or “just been cleaned” to encourage people to come out and see for themselves. I mean during this time, who wouldn’t want to be in a home that has been sanitized before a showing right? In situations where the home may have some sort of shared utilities or spaces, selling it may be tricky, because buyers now request homes that have things like in-unit laundry machines, and other facilities that they wouldn’t have to share with strangers.
Coronavirus has changed life as we know it, and has taken many lives all around the world. We want to encourage everyone to stay positive and stay safe. In the meantime, it is a great time to search for a house, so get pre-qualified and start shopping for your dream home now!