Real Estate slowed down when “Safer at Home” began but it did not stop. Thankfully, realtors already had the technology and ability to market and showcase properties prior to the pandemic. All we needed to do was lean in to and refine the available platforms. With photos, vitural walk-throughs, electronic signatures, and safety precautions, we have been able to create an environment for buyers and sellers that is even safer than going to the grocery store when buying or selling a home.
Yes, the real estate market is hot! During this time, there has been shifts in people’s values. As people have slowed down they realized the importance of having a safe place for their family. According to the Housing Vacancy Survey provided by the U.S. Census Bureau, Americans place a great value in home ownership and it is continuing to rise. COVID-19 may be slowing down our lives, but it is increasing our value in home ownership.
In addition to an increased sense of security and home ownership, people are shifting other needs and values. Some people feel their home is too big and want to downsize. They have realized they don’t use most of their home. Others are busting out of the seams and want more space. Businesses have transitioned, too. From small business to corporations, people are learning how to work from home. This ability to work from home has created a new need; a home office or studio. Now, more than ever, personal, outdoor space has become a huge desire. Because of this, some families are even willing to downsize living space for yard space. Families are reconsidering alternative education for all ages and need space to accommodate a virtual classroom. It has become more apparent that these shifts to fulfill different needs and values are creating a new demand in the real estate market.
So, what can we expect in the real estate market? The news is good. According to Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research at the National Association of REALTORS®, based on his research and data, there is no panic among home sellers. Both buyers and sellers are acting normal. He does not believe home prices will decline because of the shortage of inventory. He anticipates that as we head into 2021, there will be a pent up demand and predicts a 3 to 5 percent increase in sales price. This is good news for sellers. And the good news for buyers is that interest rates are still low.
Our own experience already indicates a strong market in the South Bay. New listings are receiving multiple offers and are selling. The real estate market may have slowed down but it is is picking back up. If you are a buyer or seller, there are steps to take to successfully compete in this new market. Give Steve a call, at 310-529-6456, to learn what you need to do to take the next step.