When will the home prices start going down as a result of COVID19?

Reblogger MaryKay Shumway
Real Estate Agent with The Kellstrom Ray Agency, Inc. (Est. 1948)
https://activerain.com/droplet/5nxN

Although this article features Central Florida, the same kind of market currently exists in Door County.  I sold several homes during the stay-at-home order, and inventory continues to be extremely tight and almost non-existent in some price points (finding anything right now under $300,000 continues to be a challenge here).  Most listings are getting multiple Offers and properties are often going for over the asking price.

Original content by Beth Atalay

When will the home prices start going down as a result of COVID19?

We all know real estate is local. By reading the market data for the West Coast, there’s no way a home buyer would learn what the real estate market is doing in Central FL.
There are many factors that affect home prices to go up or down in any market. One of them is DEMAND.

I read many posts on social media from real estate professionals who seem to think home prices are on the decline. While this might be true for some parts of the country, it hasn’t been the case for the majority. On the contrary, home prices continue to rise, at least in Central FL.

Yesterday, I had a conversation with a home buyer who wanted to see a home that came on the market nine days ago, listed at $380,000. Since she is a cash buyer, she asked if the seller would be insulted with a $330,000 offer. After looking at the comps, I advised this home buyer the home was priced just right, within the market value and my suggestion would be to first preview it and if she wanted to make an offer, not to go below asking. When I contacted the listing agent, I was advised it was under contract which I relayed to my buyer client. She is a new client whom I never worked before so I don’t know her that well. Apparently, a family member of hers is a real estate professional who has been giving her advice. I’ve seen this happen before and its usually not a good sign, especially if they live in a different state. They can certainly make assumptions but none of us can say for certain home prices will be declining in result of all the shut-downs due to Coronavirus.

I have been a REALTOR® for 18+ years and never have I advised a buyer or a seller not to buy or sell a home because of my assumptions. Not a wise thing to do regardless of the circumstances because we just don’t know. Imagine if a buyer client listened and not purchase a home at this time when the interest rates are low and six months down the road, home prices have climbed up and interest rates are higher. Homebuyers and sellers, we talk to take our advice to heart and may act based on our “assumptions”. Our job is to help them market their homes and assist them in finding their dream home. Most of us are not economists nor should we play the role of one in the real estate field.

I can tell you there were very minimal showings in Central FL during the shut-down but even then, homes were selling. I personally sold and closed three homes during that time.
Sadly, there are some buyers who are waiting for the home prices to drop within the next few months due to the pandemic. Will that really happen? We shall watch the market and see. The best thing we could do for the consumer is to report real data, not assumptions.

If you are looking to buy or sell a home in Clermont, Minneola, Groveland, Mascotte, Winter Garden areas, I would love the opportunity to speak with you. Call or text me at 407-929-1852, email bethatalay@gmail.com or visit www.WhereToLiveInOrlando.com


When will the home prices start going down as a result of COVID19?

 

 

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Beth Atalay, Broker/Owner

Cam Realty and Property Management

407-929-1852
Wheretoliveinorlando.com BethAtalay@Gmail.com
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Rainmaker
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Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Thank you so much for the re-blog MaryKay Shumway, I appreciate it very much.  

Jul 20, 2020 11:07 AM #1
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MaryKay Shumway

Door County Wisconsin's Real Estate Expert
BUYING or SELLING a Door County Property? Call Me Today!
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