We all are walking during a time where none of us have been through this magnitude of the crisis. There are lot of uncertainty, anxiety, and fear of unknown.
Real Estate: BC(Before COVID19)
Reflecting back on our life just a couple of weeks back everything seems to be like a fairy tale. Real Estate was extremely HOT, interest rates were LOW, unemployment and stocks were unbelievable.
Real Estate: DC (During COVID)
As of today March 24th, 2020, things are uncertain. A lot of anxiety and fear of what next has created a commotion in our life.
The political environment is fighting over how to get back to our OLD normal. Fed is pumping money to avoid the 2008 disaster and worldwide economist is doing their best to predict what the outcome will after the virus or curve flattens down. As a consumer or the general public, I feel like we are watching a big screen with so many acts that it is nerve-wracking. We don't know what to make it out of all this. We are sitting on the edge to know the ending. I wish we could travel in the future!
Northern Virginia current real estate market condition:
Executive Order 53: As we all heard on March 23rd Virginia Governor Ralph Northam released Executive Order 53. In which he lays out a specific direction to businesses across Virginia. While some businesses are now required to close for the next 30 days, real estate business is not. However, the Realtor community does have to follow the protocols laid out by the CDC.
As a local Fairfax and Loudoun County Realtor since 2004, I have been through these ups and downs of the housing market in the area. At the moment to your surprise, I have been out and about showing homes with a lot of precautions and safety measures. My serious buyers are house hunting. Motivated home sellers are still on the market rather than taking home off the market. And we are getting showings!
To sum up in simple words: Similar to any other real estate market place homes that show well, updated and priced right are receiving multiple offers or an offer in a reasonable time. You read it correctly we are still talking multiple offers.
Here is my personal perspective if you are a:
Home Sellers: Many sellers are on the fence whether to list the home NOW or hold off or did they missed the market. If you are a home seller that targets 1st time home buyers and downsizing home buyers good news! your home is still in demand. Over Million plus homes, we are seeing activities but a very slower turn over.
Marketing is key: Gone are all OLD days when you can just snap a picture of the home, list on MLS and have an attitude everything and anything will sell. A lot of pictures, staging, and creative marketing will be needed. Buyers don't want to browse the home just because you listed. SERIOUS buyers are out there will only previewing the home that they want to seriously consider BUYing.
Home Buyers: THIS IS YOUR TIME TO SHINE!!!
Just a few weeks prior home buyers had no leverage in a transaction. Even though we are still seeing multiple offers on some of the first time homes or homes priced under $550K in the Fairfax and Loudoun County area. You can still get a deal! The competition is definitely lower than a few weeks back. If you are in for the long term, everyone needs a home. Currently, you are quarantined in our home.
Also, keep in mind the Fed AKA Government will add stimulus packages to assist/rescue a homeowner over a renter. Wounds from the 2008 financial meltdown are still fresh. If you have strong job security and a long term goal be a homeowner! Not recommending you venture out to house hunt. Decide based on what works best for you and your family.
Many have folded or are off the market for various reasons. Investors don't want to carry multiple property mortgage risk, uncertainty in the market place and many lost everything due to a roller-coaster stock market ride. They have taken a step back. Which may be good for our first time home buyers.
Real Estate: AC (After COVID19)
I wish we had a crystal ball. As I wrote in my earlier blog before the whole COVID meltdown if you believe in your local economy, have financial standing and willing to commit to a long term opportunity COVID may be just another dark memory of our life. Not going to deny the road to recovery will be a long path and we will get through this just like we all recovered from 20008!
Please seek professional advice before making any financial decisions.