Stay-at-home orders and social distancing guidelines have spread across the country. These restrictions have taken a toll on the economy and the real estate industry, making buying and selling homes more difficult. However, while people were stuck at home, the number of people searching for homes online has increased substantially. Agents have found ways to pivot by setting up virtual home tours and finding ways to complete transactions online.
Loosening restrictions, a rise in home prices, and low-interest rates will all impact the overall market.
As the spread of the virus has started to slow, states are beginning to reopen, allowing the real estate industry to start getting back to business as usual. Now that stay-at-home orders are lifting, home prices are rising, and the low-interest rates we’re seeing may make now a great time to encourage your clients to put their homes back on the market!
“Fewer homes on the market will lead to more competitive bids from buyers.”
Restrictions Loosening
Our country has a very low housing supply at the moment. This low supply is very beneficial to sellers because there is less competition between them. The smaller amount of available homes will result in competitive bids from buyers. This supply and demand will allow sellers to get the best and final offer they need!
Home Prices Rising
When the supply of a product (like a home) is low, it’s considered to be more rare, meaning the value typically increases. Due to the lessened supply, home prices are rising. The amount these prices will increase is ultimately dependent on where the home is on the market. In cities starting to reopen, more and more houses are put on the market every day, and the prices aren’t rising quite as much. Places still in lockdown have fewer homes on the market, so there is a more considerable rise in price. If restrictions are just beginning to lift in your farm, it could be an ideal time to take advantage of the low home supply and get your clients to put their home back on the market!
“Lower interest rates make dream homes more accessible!”
Low-Interest Rates
Many people are never sure it’s quite the right time to buy a house, especially since it is such a substantial financial commitment. Right now, interest rates are unusually low, putting their dream homes within reach. Low-interest rates make people feel better about investing in a new home because their money may go further, or it will allow them to place bids on homes they initially thought were out of their price range. When talking with your clients, be sure to explain what these low-interest rates mean for their specific situations.
Loosening restrictions, rising home prices, and low-interest rates should allow sellers to get the best value for their homes, while also making it easier for buyers to bid on the home of their dreams!
