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 may plummet.
Neither of these assumptions are true. In fact, people are still buying and selling homes at a pace not seen in years. The volume of sales activity has rebounded greatly during the summer market, but inventory levels are still low with strong demand placing upward pricing pressure in most communities. Home sellers have in many instances, on properly priced homes, had multiple offers throughout the summer.
All-time low interest rates have been a large driver of homebuyers and strong sales in the market. These rates have been forecasted by some to last through 2021 and possibly 2022, but no doubt, there will be some ups and downs and other factors contributing to market conditions; trying to time the market is nearly impossible.
How does real estate work in a country under attack by a virus? It’s different, that’s for sure. But the newly implemented precautions with masks, sanitization and maintaining social distancing during showings have actually turned out to be quite efficient and assuring.
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.
Even so, open houses in San Diego are still more of an exception for the time being than the norm. For that reason, most homes are now shown in person according to Corona specific guidelines / instructions (masks, hand sanitizer, etc.) and even sometimes 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 in April, but has been steadily rising since then and is nearly back to pre-corona levels.
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 all during the pandemic.