We hope you are doing well and finding things to do to help you stay positive in this time of uncertainty. Recently, there have been lots of questions about the impact Covid-19 is having on the real estate market. Although, we don’t hold a crystal ball, we want to address some misinformation and common concerns that buyers and sellers might have.
Question: How has Covid-19 impacted the real estate market?
Answer: If you asked one week ago, we would say it has had very little impact. Today however, it is a different story and we think that is how we will continue to see things; a day to day change. The sales that were under contract are closing as scheduled as far as we can see. Homes that are priced right are still selling quickly, but less are now going on the market and how the marketing approach is completely different. The buyers we are seeing are those people who are anxious to move because they HAVE to; relocating or closing on the house they are currently in.
Question: Can you guarantee me that it is safe to list my home and have people walk though it?
Answer: In our current environment, there is risk every time your home comes in contact with someone you don’t know. What we can guarantee is that our agents will do everything they can to keep you safe and still get your home sold. This means that the approach to listing your house will be different than what you may be used to. We start by taking great pictures and shooting a virtual home tour video so that people can tour your home virtually before previewing it in person. We then typically circulate the listing in-house to over 200 agents as an exclusive listing within a few days of hitting MLS. Once it hits MLS we ask that agents only make appointments to show your home in person, practicing social distancing in groups no larger than three, they will be instructed to wear gloves, not touch anything within the home and be directed to use disinfectant wipes to enter and leave your home so that you are protected.
Question: How do you think Covid-19 will impact the price of real estate going forward?
Answer: With the speed of change today, we wish we could predict the future, but no one can. Here is what we do know: right now there are more buyers wanting to buy than there are homes listed for sale. Home prices are still trending up due to lack of supply. We believe that we will see an overall economic slowdown as a result of Covid-19 which will put downward pressure on the number of sales that happen during our spring market, but we expect this to simply be a delay in returning to the strong conditions that we have seen leading up to this “Pause”. There are many factors that can influence how quickly we get back to a normal operating environment – including the slowing of the spread of the virus, the economic response provided by the federal and provincial governments, the speed with which consumer confidence returns and much more.
At this point, no Canadian jurisdictions have been directed by the government to cease trading. We are taking every precaution to ensure the safety of our agents, their clients and families.
Just remember, this too shall pass. It is a difficult time, but we will get through this and if you need help, or just want to chat , we are here. If you are home with your family, we won’t have quality time like this again, so enjoy it. Catch up on your sleep, do that at-home project you’ve wanted to get to, try meditating or a new recipe. This won’t be forever, and we are in it together.
Royal LePage Atlantic