We are getting questions about how to decide if this is a good time to buy or sell. Our leadership team brings over 50+ years of combined experience in all types of markets.
While Covid-19 (Coronavirus) makes shockwaves, we need to remember there is not a fundamental problem with real estate or mortgages. However, Covid-19 will cause an impact on home sales. There is no way to predict if the market will have more or less volatility if you wait several months to buy or sell.
Prices, interest rates, and days on market will be fluctuating more than we have experienced in recent months.
Prediction For Immediate Market Shifts
- Second home and luxury markets will see slower sales & negative pricing impacts.
- Homes priced above $500,000 will feel more impact than homes under $300,000.
- Expect longer financing, appraisal, and due diligence contingencies to mitigate uncertainty.
- Covid-19 clauses will become standard in contracts.
When clients ask us what they should do, it truly depends on your goals and priorities.
A Covid-19 Real Estate Guide To Help Decide What’s Best
Buyer Priority: Must Buy in 2020
Action: Some buyers will benefit from the uncertainty and find opportunities for a better deal in this market, while rates are still low.
Buyer Priority: Flexible about Buying
Action: Consider your situation. Is your income secure if the economy suffers? Would making a move benefit you financially or help you get into the home you always wanted?
Seller Priority: Must Sell in 2020
Action: Buyers are active and rates are low, so it is a good time to sell. Prices are flat and may decline, and days on market may grow if we have an extended slowdown. Taking bold action now could unlock your situation. Once the dust settles, there may be more competition than there is now as sellers jump back into the market.
Seller Priority: Flexible about Selling
Action: Ask yourself these questions. Is your income secure if the economy suffers? Would getting your equity out of your home and/or being debt-free on a mortgage be beneficial?