Monthly Archives: May 2020

Expected the Unexpected in 2020

What Trends to Keep an Eye on in Summer 2020

Along with all business and industry, real estate selling has been deeply affected by the coronavirus crisis. The Department of Homeland Security declared residential real estate to be an essential service, but many cities and states have enacted specific restrictions to protect public health.

As healthcare professionals work tirelessly to contain the risk, states are beginning to open up. What real estate trends can you anticipate this summer as we enter the “new normal?”

Generational Buying

The so-called “silver tsunami” continues as baby boomers enter retirement age with plans to downsize. At the other end of the scale, percentage increase in Generation Z mortgage applications experienced triple-digit growth over a period of one year. These factors point to an increase in demand for smaller, more affordable homes.

Economic Fears

Experts were already predicting a recession for the 2020-2021 period. Waves of business closings and unemployment claims triggered by the coronavirus crisis have turned talk toward a possible depression. Unlike the financial crisis of the late-00s, this economic climate is not driven by housing. Low interest rates could help real estate selling weather the storm.

Move to the Suburbs

Suburban growth was already on the rise, thanks to millennials starting their own families and looking for affordable housing. Watch for this trend to continue, as health concerns cause more people to leave densely populated urban areas.

Rise of iBuyer

iBuyers, who use automated valuation models (AVMs) to make cash offers on homes sight unseen, appeal to sellers who are looking for speed and convenience. While these programs have grown in popularity, they remain a hotly contested topic in real estate selling.

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Sell Your Home Fast!

What Are the “Real World” Impacts on Real Estate Buying and Selling during the Coronavirus Pandemic?

The ups and downs of the country’s economy usually drive real estate trends, but this year’s coronavirus pandemic is casting a shadow the likes of which have rarely, if ever, been seen. What are the ramifications for the real estate market? Here’s a look at the likely short- and long-term effects of coronavirus restrictions.

Short-Term Effects

• Real estate agents are allowed to show only vacant homes and open houses are banned, bringing sales to a near standstill. 

• Sellers are being asked to sign a Listing Agreement Coronavirus Addendum, which stipulates the conditions under which the home may be shown. In addition, agents, sellers and buyers must sign a Coronavirus Property Entry Advisory and Declaration (PEAD) assuming risks related to COVID-19.

Online video tours, already a significant element in real estate marketing, have become even more essential, with many of them being conducted live.

• Agents are not permitted to distribute business cards, flyers and other paper-based marketing materials

• Appraisers, inspectors and other professions involved in real estate transactions may or may not fall under the “essential services” umbrella. Regardless, many of them may choose not to work at this time. As a result, delays are likely in any potential transaction.

Long-Term Effects

• Most governors have stated plans to roll back restrictions slowly, meaning recovery will be gradual, not immediate.

• The buyer pool may continue to remain low, depending on how many are reluctant to resume normal activities. Those who do forge ahead will enjoy the benefit of lower interest rates.

• As transactions continue to experience delays, cash sales may become the preferred method.

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