Questions.
I get lots of them. Most realtors do – even in “normal” times, and these times are certainly not normal.
Lately, most people are asking me what’s going on in the market now, and what’s going to happen. Hard questions to answer – even the one about what’s going on right now. And, since we predict the future by looking at the past, and nothing like this has happened in over a century, getting a clue about the future is especially tough.
But we can try.
What’s happening now?
Real estate is happening. After falling off the cliff in mid-March, things are moving again. My case is fairly typical. In March, I lost four deals worth nearly $3 million, and two other clients put everything on hold.
By April 20, I had three deals under contract. So, batting 500. Not terrible. And this seems to be happening for others as well. Things are especially active under $500,000 and multiple-offer shoot-outs are still happening.
So, yeah, real estate goes on.
What’s next?
Nobody knows, of course, but I’ll stick my neck out …
National real estate experts and others tell us business is coming back gradually and will continue to do so. Unlike the collapse in 2008, driven in part by oversupply and under-qualified buyers in residential real estate, we have short supply and high demand from well-qualified buyers. Some predict a gangbusters comeback in the fall.
I’ve been asked whether things will be cheaper later in the year. I doubt it. While demand has softened – especially in higher price ranges – buyers expecting to pick up bargains like seashells on the beach will be disappointed.
So, is this a good time to buy? Or sell?
One word answer: Yes.
Money is historically cheap these days. Buyers can qualify for more and better than they could at higher interest rates. And if you want to sell, there’s likely someone out there who can afford your house.
But more than this, there’s the issue of intent. When many people are afraid to go into a strange house, or have strangers come into theirs, it’s a given that anyone showing is pretty serious about selling. And anyone out looking is serious about buying. That cuts out the lookie-loos and tire kickers. And it cuts out sellers who overprice hoping to land a sucker.
I little clarity. Not a bad thing.