Due to the coronavirus outbreak, the real estate market is not operating in a ‘traditional’ manner. Instead, real estate has entered an entirely virtual world, which has proven effective for buying and selling homes over the last few weeks. Realtors are working effortlessly to pivot their business practices while maintaining a high level of safety. It’s important for buyers and sellers to know how the real estate industry and market has been affected by COVID-19 and how their realtor is adjusting.
Q: HOW HAS COVID-19 AFFECTED THE REAL ESTATE INDUSTRY?
A: The National Association of Realtors recently conducted a survey asking members questions about how the coronavirus outbreak had impacted home buyer and seller interest and behavior. Highlights from the survey include:
37% said lower mortgage rates excited buyers much more than the stock market correction.
Almost 8 out of 10 (78%) said there has been no change in buyer interest due to coronavirus.
Only 16% said they believed buyer interest has decreased due to coronavirus.
Nearly 9 out of 10 (87%) said coronavirus has not affected the number of homes on the market.
NARS also noted that this data is constantly evolving weekly as the coronavirus progresses.
Q: IS NOW A GOOD TIME TO SELL?
A: According to an article by Fox Business, now is a great time to put your home on the market for a number of reasons:
Buyer’s Online Presence: More people are at home all day online. Your agent is going to emphasize digital marketing to take advantage of this. Buyers have more time to browse real estate websites and social media where they are likely to see listing ads.
Competition: The market is going to skyrocket the minute in-person tours are allowed again. Listing your home now means less competition. Buyers don’t have a ton of options, which may drive up your list price in the event of multiple offers.
Time of Year: It’s the best time of the year to sell a home. Families are especially motivated to buy now so that their move lines up with school year. According to zillow, “U.S. homes listed in early May generally sell almost 2 weeks faster than the average listing in the year, and command a final price $2,400 more, on average than listings at other times.”
The most important thing sellers need to know during this time is that there are still buyers out there. Luckily for sellers, the coronavirus pandemic has not caused a significant decline in homebuyers, in fact, according to Danielle Hale, chief economist at Realtor.com, the pandemic has actually increased the likelihood of buyers purchasing a home. “Surprisingly, a majority of consumers believe that a recession will not change or will increase the likelihood that they will purchase a home. Their optimism likely comes from expecting low mortgage rates and few other buyers to compete with,” said Hale.
Q: IS NOW A GOOD TIME TO BUY A HOME?
A: Interest rates are historically low which means buyers have more purchasing power than ever before in our lifetime. If you buy now, you will be paying less to borrow money. Experts predict that these rates may drop even lower over the next few weeks as the coronavirus outbreak continues. Homebuyers can capitalize on this.
According to Fox Business, many buyers believe the coronavirus would lead to a recession, but that it wouldn’t cause them to not buy. In fact, the prospect of a recession is actually an allure to many home buyers. “27% of respondents said an economic downturn would make them more likely to purchase a home, while another 16% said it would make them ‘somewhat’ more likely to purchase. On the flip side, only 4% said it would make them less likely to buy. Buyers can capitalize on the prospect of prices dropping between 1-5% due to a potential coronavirus-related market hit in the coming weeks.
Q: WHAT SAFETY PRECAUTIONS IS MY LUCIDO AGENT TAKING?
A: We have implemented safety procedures for all listings – this includes appointments, staging consultation, photo shoots, and showings. We have also educated and encouraged our sellers to adopt our showing safety guidelines to minimize potential risk while successfully marketing and selling your home.
Q: WHAT IS MY REAL ESTATE AGENT DOING DIFFERENTLY TO ADJUST TO COVID-19?
Q: HOW AM I GOING TO TOUR A HOME IF I CAN’T PHYSICALLY WALK IT?
A: Agents have been producing virtual tours, matterport videos, targeted social media ads, and more digital pieces for home buyers advised to social distance. Buyers can see homes through FaceTime, Facebook Live, video, and more. Sellers get the added bonus of having their home emphasized on digital platforms. This ensures the safety of the buyer, agent, and seller, and allows the buyer to get a comparable experience to walking the home- leading to a greater possibility of closing the sale.
Q: WHY SHOULD I CHOOSE TO BUY OR SELL WITH LUCIDO DURING THIS TIME?
A: When you buy or sell with Lucido, you don’t just get one agent, you get access to an entire team. We have been working to pivot our business to meet the needs of our clients virtually.
Digital Marketing: We have a marketing team composed of marketing coordinators, digital coordinators, videographapers, and photographers who are skilled in creating digital content to market your home, which is imperative during this time. We are able to emphasize digital marketing through an extensive number of platforms, tools, and more.
If you’re looking to buy or sell a home, contact us to set up a virtual meeting today.