That quote rings more than true as we wish all of our Clients, Friends & Family, and fellow Americans a truly Happy Memorial Day.
Today we are going to take a dive into what it's like Selling or Buying a property during Coronavirus times, as well as, how a Holiday weekend affects marketing and inventory.
Thinking about Selling or Buying a Property during COVID?
This is a topic that we find ourselves discussing constantly with clients. The questions are abound with thoughts of:
- 'Is the market still strong?'
- 'What's the process like?'
- 'Are buyers actively looking?'
- 'Can we get a good deal now?'
First things first, and most importantly, the market is certainly still very strong. Last month's newsletter we discussed the under-supply outweighing the drop in the demand, which kept our market prices afloat throughout a -55% drop in inventory. As we see the first two weeks of May lagging -27% compared to 2019, it shows signs of a quick bounce-back, and will be more apparent in the coming weeks.
The process of selling and buying is, as you'd think, a much more organized event at the moment. Selling a property has become laser-focused on virtual tours, professional photography, and pre-qualifying buyers prior to accommodating showings. All while buying has shifted its focus on seeing places that truly fit the mold of what you're looking for.
With the increase in photos, virtual tours, videos, and pre-qualifying it has created a process where buyers thoroughly vet the property prior to seeing it. Increasing the need, more than ever, to have a professionally managed marketing plan for selling.
To be frank, this is not the market where "deals" are to be had, but rather, a market where OPPORTUNITY can present itself. Even through the booming markets of 2018 and 2019 the appreciation rates on home values has continued to climb ~7% annually. Buyers that purchased a home at a fair value within the last two years have still seen an average increase of $50k year-over-year.
To summarize what to expect out off each process (selling vs buying) it truly comes down to this:
Selling? Now is a great time.
Now is a great time. Virtual marketing reduces tire-kicking and strangers in your home. Increased purchasing standards lead to a stronger pool of qualified buyers. Low inventory means your home has less competition and a better chance of competition among buyers.
Buying? Hire a professional!
Increased qualification standards mean you need to be organized, pre-approved, and present yourself as the best candidate when competing in multiple offers. Low inventory has lead to more competition and for buyers looking for not only a home, but a worthy financial investment, it's important your agent knows the market trends, and values, in and out.