Uncertainty with COVID-19
We all know that Covid-19 turned our world upside down, but how did it affect the way we live? Covid-19 is easily transmittable and has caused a change in the way companies conduct business. A transition happened in the way companies were handling their business matters and pushed their employees to work from home. The world of working from home undoubtedly created a shift in attitude in the workforce and a massive change in the housing market. As you may have noticed, we said a "change" in the housing market, not “stopped.”
When social distancing was put into place, along with shelter-in-place orders during the beginning cycles of Covid-19, many wondered if it was even possible to purchase a home during these trying times. Well, the answer was yes, and those who had the opportunity to buy a home during this time are considered lucky! Home prices were normal, interest rates were low, which is the perfect equation in purchasing a new home to house a family. With the pandemic still present in our lives, home values have skyrocketed. When Americans caught on that interest rates were as low as they were, many buyers flooded the market and caused an increase in demand. When there is more demand than there is supply, prices will usually increase. Home prices have climbed to their peak, and buyers have finally become reluctant to purchase a home for such high prices.
**If you would like to see the fluctuation in home prices, visit our previous blog post as we talked about Cookeville’s market**
The pros and cons of purchasing a home during the Covid-19 situation:
The way Covid-19 is currently affecting the real estate industry brings both pros and cons to the table of discussion. Before the market began heating up was the perfect time to purchase a home as there was less competition. During this time, many people’s lives were on hold and gave those looking to buy a slight edge. However, the market has changed. With many buyers entering the market right after the pandemic’s peak in cases/deaths, it has made it extremely hard for individuals to search for a home, but not impossible. Interest rates are still lower than normal, which ultimately means lower payments. It is expected that these low rates will remain well into 2022. So, if a move is needed, don’t hesitate to jump into the market. The market is not too terrifying if you are working with the right agent.
Selling a house during the pandemic:
Many real estate professionals would agree that sellers have an edge on the market at this time. There is not very much competition as many sellers are hitting pause on entering the market. As mentioned before, the transition into working from home will cause people to spend more time at home, which can cause more eyes to fall onto your listing. So, be sure you are working with an office that can give your home the maximum amount of exposure and sell your home for top dollar. The more eyes on your listing, the better! In this type of market, you are guaranteed more money in your pocket at closing!
How a real estate professional can be especially helpful:
During the beginning period of the pandemic, the real estate market could not be put on hold, but this developed some ideas that made the buying process easier. Agents can now conduct virtual meetings (if needed) and use virtual document signatures when it comes time to make an offer. Since this industry has shifted into becoming more reliant on technology, some offices (like our own) provide different types of multimedia that you can watch/read/view that can help you along the way! If you are interested in learning more about selling/buying, be sure to venture out and read our other blogs or hop on over to our social media pages for tips and tricks!