There’s a buyer’s market hidden beneath the veneer of current events. The rush on home buying, refinancing, and mortgage loans should be just as dramatic as the rush on toilet paper.
Fear and uncertainty create problems for the economy. The system that proliferates that fear, despite their intentions at keeping the world informed, misses out on the opportunities it can give to the people it is trying to protect. With the myriad of concerns the recent crisis has placed on overall public health, people are now forced to distance themselves to mitigate spread of disease. Large quantities of employees work from home. Restaurants, fitness centers, and other ‘non-essential’ businesses have closed their doors. Coverage of the housing market isn’t as abundant. Which is surprising since financial companies, such as mortgage lenders, are deemed as essential and allowed to remain operational.
In fact, due to the Federal Reserve’s policy cuts, there is more incentive for home buyer’s to find the opportunity within the dilemma.
This has caused a paradigm shift in the housing market.
Because what should be a seller’s market now looks like a buyer’s market.
To explain this, we focus on points supplied by The Balance: https://www.thebalance.com/hot-cold-and-neutral-real-estate-markets-1798785.
For it to be a seller’s market in the housing industry:
• Inventory must be low.
• More buyers are purchasing.
• Median sales prices are increasing.
• Real estate ads are vanishing.
Inventory is low, but not as many people are searching for homes. Quarantines have become commonplace. Even with lower interest rates, is it the right time to buy? Why would you look if you’re being encouraged to stay indoors?
Realtors have begun to accommodate shoppers by offering virtual tours.
Alongside a great majority of users searching for homes over the internet, real estate ads have become more ubiquitous and digitized. Our sister company e-Homes Realty reports that a majority of users do their shopping over mobile. It’s easier to get a quick, succinct message across. And what people need to know is that there is a reason to find a home.
For it to be a buyer’s market in the housing industry:
• Higher inventory compared to previous month/year.
• Fewer buyers are purchasing.
• Median sales prices are declining.
• Real estate ads are diminishing.
With such low inventory of homes on the market, most economists would say it’s a seller’s market. But, according to the Washington Post’s article “Experts Predict What the 2020 Housing Marketing Will Bring”, prices of homes will flatten in 2020. Interest rates are low. Real estate ads are ubiquitous. If now isn’t the time to buy, when?
History repeats itself. Once this crisis is over, the housing market could boom, just like it did after 2008’s recession.
If you’re interested in purchasing a home or refinancing, Starboard Financial is the company that can help you. You can give us a call at: 1-855-STAR-FIN. An email at: . Or fill out a form on our Contact Us page: https://starboardfinancial.com/about/contact-us/.