How much has Covid affected the real estate market...
As we continue to adjust to life during the COVID-19 pandemic and already a full month is fast approaching since "stay home" orders came into effect, we find ourselves upon another set of real estate market information to reflect on.
If you know us at all we love to stay on top of the market.
Information to us isn't just about being the relayer of facts & data, but more importantly being the interpreter of what it all means.
Right now quite honestly...the monthly figures don't mean much. We find ourselves analyzing things not month by month, but day by day, and week over week.
The biggest questions we are getting don't relate to how many sales we've had, or how many properties have come to market, or is this faster or slower than last year. It's much more personal than that.
Because of that I figured I'd provide a few of the common ones for you today.
1. Can I still buy a house?
Right now is a great time to double down on your online research, viewing videos & virtual tours, along with driving around neighbourhoods you are considering move to. If you do find a home you love we can work with the seller to gather more information for you safely. We have creative solutions in place for virtual showings, inspections, walkthroughs and even signing legal paperwork. The land registry, banking, and real estate services are part of Alberta's essential services, so we don't expect any issues with closings.
2. Can I still list my house for sale?
While total showings and homes sales may be down - homes are still selling across all price points and property types. We have seen 2+ weeks of consistent showing activity, and are nearing a baseline # of sales for the "in-pandemic" period. As the stay at home orders remain in place we are learning more and more about the overall pace of sales to expect, and will be watching closely as we approach "peak" cases of Covid-19 in the province.
All media & marketing services needed to prepare and list your home for sale can be accomplished with the utmost care and safety to set your home for success, while maintaining close adherence to all social distancing protocols.
3. What will happen to home values?
Well this is the $1 million dollar question, and I wish I had the answers for you. Even though i don't know, and nobody knows the final outcome of the prolonged Covid-19 & oil price situation, we do know a few things...
Prices adjust based on supply & demand, not just on the # of sales that happen. Which means that even though we expect some home sellers to take substantial discounts during this challenging time, it certainly won't be the majority. Not with government programs in place to defer mortgage payments, defer property taxes, provide income & support business owners at unprecedented levels.
The truth is we are experiencing a slow down in sales right now when comparing to an "average" April by 60%. We are also seeing a reduction in overall listings on the market, and nearly a 60% drop in new listings coming to market.
There is no playbook for how we could come out of this, but with all the changes we expect a virtual RESET to the market. At the beginning of the pandemic we found ourselves in an improving market, but still geared to the buyer. But depends on what happens with pent up demand, and total overall inventory changes - we could completely flip the script. Time will tell.
We also know life still needs to happen. Many who are in a state of pause will re-enter the market to make their necessary & hopeful life transitions. This could happen fast as we are hearing from the Chinese market on rebound, or it could happen gradually.
This information is just the tip of the iceberg. I'll be watching intently and reporting it as things change.
Let me know if there is anything I can help with in the meantime.
Stay safe, and healthy,
KARLA LINARES, Realtor®
Redline Real Estate