One of the questions we’re asked almost on a daily basis is “How’s the real estate market?” Most people we speak with assume that, because of the pandemic, it’s come to a screeching halt and that prices have plummeted.
Neither of these assumptions is true. In fact, people are still buying and selling homes. We’re not seeing the volume of activity that we usually see in the spring market, but the market is not stagnant.
Prices have remained much the same as they were before the onset of the pandemic, much to the dismay of homebuyers. Home sellers are digging in and few are willing to take rock-bottom offers.
It’s the low-interest rates, however, that keep homebuyers in the market.
How does real estate work in a country under attack by a virus? It’s different, that’s for sure. But the workarounds to maintain social distancing have actually turned out to be quite efficient.
Viewing homes for sale
A recent Realtor.com survey finds that nearly 60 percent of home sellers say they would be fine with holding an open house.
Then, there are others who put restrictions on showings. For that reason, many homes are now shown virtually by the agent or with 3-D tours.
And, they’re being embraced by homebuyers. One of the big real estate portals says that they are seeing an almost 500 percent increase in requests for agent-led video tours, while another portal is seeing a nearly 200 percent increase in requests for 3-D home tours.
But, will they actually buy a home they’ve only toured virtually? According to the aforementioned Realtor.com survey, 25 percent of homebuyers aren’t opposed to buying a home they have never toured in person.
The number of home showings across the country took a dip on April 12 but has been steadily rising since then (an increase of nearly 24 percent as of April 26).
The entire home buying and selling process has gone virtual, from home showings to inspections, appraisals, and closings.
Please reach out if you have any questions about the process and how we can help you navigate it during the pandemic.