“Am I going to lose the appreciation I’ve gained on my house in the last few years?”
“Will I be able to get a really good deal on a house this summer?”
“Are we all going to die and go to hell?”
As a real estate agent, I can give you a best guess as a professional on the first two questions. I can only speculate on the last one.
Life is different now. It will never be the same again. But that’s a good thing. Humans are nothing but change agents, evolving and getting out of our own way and maybe, just maybe, we become people who understand how our actions can make or break this planet.
That aside, are we looking at a housing crisis?
Pundits Say No
This isn’t 2008. We don’t have the same factors that allowed the housing market to crash in 2008. We have other factors but, according to Chief Economist at Realtor. Com, Danielle Hale and the Goldman Sachs GDP Forecast, a drop in housing sales is just a moment in time and we will see a robust return of the market in the second half of 2020 and into early 2021.
Recession Doesn’t Equal Housing Problems
We will most certainly have a recession but that doesn’t mean a housing crisis. In the last 3 out of 5 recessions, housing prices increased.
Confidence is High
The experts are confident about what they know. Everyone is doing surveys of their clients and National Association of Realtors is no exception. 90% of Realtors said that the pandemic has reduced home buyer interest. 60% of potential home buyers are delaying purchase until summer. Two-thirds of those buyers expect lower prices
In Colorado, showings are deemed “non-essential.” Sellers don’t allow showings and are using virtual tours instead. Lenders are still lending but your credit scores need to be higher than the 620-640 they were allowing before the pandemic. Appraisers are doing drive-by’s and inspectors are being careful.
It’s all unprecedented (getting tired of that word) so no one knows exactly what will happen.
I’m telling my sellers to hang in there and be prepared to put their house on the market by end of May (pending any changes in infection rates, the economy or ????) and my buyers are all anxious to still buy and are ready, willing and able (pending the same as above).
I know this wasn’t as helpful as you’d like, but this is where we are.
My only advice if you are thinking or selling or buying, GET READY! Paint that living room, fix all those little annoyances, and uplift that landscape. Buyers—get lender-approved, ask your Realtor to send you appropriate listings, discuss them and compare with your Must-Have and Would-Be-Nice Lists. Get real and get aggressive.
I have a feeling this might be a busy summer. Then again, I could be wrong!