A message from your friends at Beverly-Hanks, REALTORS®:
As we all face the challenges of the COVID-19 pandemic, our priority is the health of our clients, employees, and the communities where we live, work, and play. We remain committed to supporting our clients with their real estate needs during this challenging time.
Many of our clients are still looking at homes, listing their homes, writing contracts, and closing on life’s most significant transaction. As a company, we stand ready to assist our clients. Our entire team is adapting, adjusting, and working together like never before to continue providing the same high level of support and counsel.
Real Estate in Times of Uncertainty
You might be worried about your home’s value during this time of economic uncertainty. The good news is that for most homeowners, the simplest course of action is to do absolutely nothing. Sit tight, be thankful that you have a safe place to gather with your loved ones, work from home, or even self quarantine. At times like this, it becomes clear that your home is much more than just an investment.
Fortunately, real estate has proven to be a relatively stable investment in times of crisis. Dr. Marci Rossell, a leading economist who specializes in real estate, recently noted that the housing markets remained stable in the aftermath of 9/11. In the days and weeks following 9/11, there was a real sense of panic and uncertainty. Airlines stopped flying, events were canceled, oil and stock prices bounced around wildly, and news stories predicted economic activity could grind to a halt. Sound familiar?
However, the shock that 9/11 delivered to the world economy was short lived. The resulting cycle was characterized by a rapid decline followed by a speedy recovery, a classic V-shaped event. Of all the commonly tracked asset classes, the housing markets were one of the least impacted by 9/11. Unlike the financial markets, real estate markets move very slowly. At times of economic uncertainty, it’s a pretty safe bet that real estate will remain a bastion of stability.
For those who are actively in the real estate market currently and wondering how the pandemic will affect buying or selling:
Buying A Home
- We live in a digital age of real estate where information is abundant and readily available, without leaving your home. Interactive 3D tours allow buyers to explore a house from the comfort of their very own couch. See an example HERE.
- This current COVID-19 crisis is expected to slow the markets enough for a buyer to have a better chance of purchasing a home with less competition from other buyers.
- Most consumers are aware that interest rates are incredibly low. However, you may still have questions about how current events will impact interest rates. Our Beverly-Hanks Mortgage Services team are dedicated professional mortgage lenders eager to answer your questions and offer personalized solutions.
Selling A Home
- Beverly-Hanks, REALTORS® remains the leader in using real estate marketing and technology. These days our tools and services are proving more helpful to sellers than ever before.
- Our 3D Open Houses, video and high-quality, professional photography give home buyers the ability to explore your home from the comfort of their home. From the traffic reports on our award-winning beverly-hanks.com, we know that buyers are searching voraciously, and the Beverly-Hanks Selling System ensures your home stands out.
- In days and weeks ahead, we expect to see more buyers making offers on our well-marketed homes without stepping foot through the door. This behavior is nothing new to us. It is common practice for a Beverly-hanks agent to work with out-of-state buyers who make sight unseen offers.
The Impact of Federal Reserve Actions on Mortgages
- Recently the Federal Reserve made massive interest rate cuts, but it’s important to remember that these rate cuts do not necessarily translate to lower mortgage rates.
- In the coming weeks, we expect rate lock options to stabilize as uncertainty settles out of the financial markets. We expect rates to remain near 50-year lows for as long as investors pursue safer investments, such as bonds.
- We expect new purchase loans to require longer runways as the industry processes the existing backlog of refinance transactions. We anticipate longer wait times for loan processing and appraisals. Businesses are having to adjust to smaller staffs and telecommuting teams to implement COVID-19 precautions. It would be wise to consult with your agent and loan officer to establish realistic timelines.
Rest assured. In these days and weeks ahead as news continues to develop about COVID-19, we will remain agile and diligent to help keep our communities healthy and to support our clients with their real estate needs.