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Real Estate & the Coronavirus
March 18, 2020 at 5:45pm | Sandy Erickson
With so many uncertainties around our COVID-19 Pandemic, I wanted to share some information regarding its effects on the real estate market:
How Is Our Market?
So far in 2020 through March 7th, new listings increased by 7.7% and pending sales increased by 9.9% over the same time last year.
The 2020 market has had a strong start with homes selling quickly and buyers locking in low interest rates!
Seattle, the US pandemic epicenter, is reporting a continued robust market; it has not slowed buyers from entering the market and multiple offers are still prevalent.
Windemere Real Estate Chief Economist Matthew Gardner of Seattle believes rates should stabilize or come down a bit further which will keep buyers excited about purchasing. He does not foresee a grave impact on the currently strong real estate market.
One of our listings that sold over the weekend had over 50 showings and received 15 offers!
Would a Recession Affect Our Market?
With talk of a potential recession, it is good to know that historically they have minimal impact on sales prices (other than the debacle of 2008, which was an anomaly).
There have been 5 recessions since 1980. Other than 2008, homes lost no more than 2.7% of their value and in the 2001 recession they actually increased in value by 4%.
Economists report that even if we do see a recession, they predict it will be short-lived with minimal impact on the housing market. And, if it were to come to fruition, the financial gains and losses may even out if you are buying a home in addition to selling. In summary, do not focus on market timing instead focus on your own timing.
We Are Here For You!
Our whole team is continuing to work hard for our clients as we experience the frenzy of the spring market with multiple offers galore.
We are focused on ensuring our clients are comfortable during this unprecedented time, so we plan to utilize Facetime/Skype for appointments and showings when requested.
We and our office staff are following the suggested government precautions.
We are here to safely and effectively help our clients with their real estate needs during this time of market opportunity. Please contact us today with any questions or real estate needs!