I have no idea.
This is what I’ve have seen so far and remember to keep in mind that things are always changing and that I will continue to update this topic.
- Sellers putting their home on “hold” status; this means it was an active listing but once the economy shut down they took it out of the “active” inventory. This is usually for a couple reasons. One, the sellers don’t want to show the house due to health concerns or two, they don’t want the “days on market” to add up while buyers move to the sidelines, drop out of the market or look for “deals”. But one thing is clear, if a seller puts their house on hold, they don’t “have to” sell. However, it’s still early in the new “corona-virus economy” and we are not seeing many desperate sellers at this time.
- The market is still moving. Sellers are staying on the market trying to sell, new sellers are coming to market, and we are seeing buyers purchase and close on homes. There is a segment of the population that has to buy or sell in this economic climate. I have clients in all different categories and my current escrows are staying together and plan on closing as agreed. I have buyers that are on hold, waiting to see what happens, and I have sellers doing the same. I also have buyers that would only buy if the perfect place came along in the perfect location. Which leads me to my next observation…
- There have been some huge sales in my area (Hermosa), not at bargain basement prices either. The high-end is having activity as though there is not an economic slow-down. But what I will say what is selling in the high-end is very unique and without the desperation from sellers like we saw in 2008-2009. The buyers are buying these properties because they know how hard they are to find. Properties like “double lots” and over-sized Strand lots, and other properties that are just in A+ locations. What does this mean? The high-end buyer is either not worried about the long term and /or thinks we will recover from this fast. It’s anyone’s guess either way.
- Finally, I feel like people are spending so much time in their homes, they are realizing what they want in their next house or what they want to change in their current house. I think there is going to be a segment of people that want to make a change in the next 12-24 months because of the time they spent in their homes due to the “stay at home” order (this could include growing family, i.e. corn baby or divorces…I’m just saying).
In conclusion, I have no idea what the rest of this year has in store, and the reality is no one does. But my advice has remained consistent; if you want to make a change in your home or enter into the housing market there is no solid reason to hold off. Prices have either flattened or gone down some, and interest rates are ridiculously low and seem to be staying there for a while. So, once you feel comfortable with your financial situation, it’s not a bad idea to make a move.
