The spring months are typically when the real estate market flourishes most. Most people look to purchase or sell, and real estate agents work to prepare for this season. However this year, with the impact that COVID-19 has had on the real estate market, this is simply not the case.
Tightened Restrictions on Viewings and Appointments
On March 24th, medical professionals strongly encouraged the public to avoid face-to-face interactions where at all possible. This includes home showings and appointments, which created the opportunity for virtual showings. Open houses are prohibited, which has delayed and cancelled some listings. Although the virtual experience is a great option and solution, it is clear in-person showings were and are important to both buyers and sellers. This type of purchase can be very emotional, and something technology can not substitute for.
Negotiations are Becoming Tougher
Homes are still being sold, requiring the sellers to find new living arrangements. However, this is much tougher as sellers are firm on their selling price. There is less negotiating as this is way more difficult to do during such an unpredictable time. If the price the seller wants cannot be met, then they simply won’t sell. This is a major disruption to the process and is causing a slight uncertainty in how the buyers want to proceed. Purchasing a new home is a major decision, and it’s important to make the right choice.
A Drop in Showings and Sellers
Most real estate agents have also noticed a drop in showings. This is due to the fact that people are now holding off on selling their homes until this world crisis settles. A drop in showings does cause a major ripple effect in the market. With fewer showings, and fewer houses on the market, there will be fewer purchases and the full circle is slowed.
Fewer Bids on Houses
With fewer people on the market, there are fewer bids on the table for a property. This is great for the buyer, but not as beneficial for the seller. Less competition works in favour of the buyer as they have a good shot at getting the property for the price that they want, as opposed to negotiating. However, this is assuming the buyer wants to sell regardless. On the other hand, the seller may not get the price they are hoping for – if they’re needing to sell immediately, they will strongly consider any offer on the table.
With the uncertain and unpredictable current housing market, it can be overwhelming to understand your options. Contact The Mortgage Advisors today for assistance.