5 Real Estate Myths About COVID-19—DebunkedReturn to Blog
The global pandemic known as COVID-19 has dramatically disrupted the ways we handle business, interact with others, and who we allow in our homes. With that said, it is easily understood why many homeowners and homebuyers believe that this is not the most suitable time for selling or purchasing a new property. However, home sellers sitting on the sidelines might be passing up the opportunity to make large amounts of profits on their property. While homebuyers who assume they can't schedule home tours right now might be forfeiting their chance to snag their dreams.
To help you separate the truths from the half-truths from the utter falsehoods that might be filling your social media feeds, here are five common myths about real estate during the Coronavirus pandemic—debunked:
"It's a terrible time to sell your home."
Many home sellers who may have looked forward to listing their home this season have postponed those plans. Toward the beginning of July, new home listings dropped 14% in comparison to a year ago, and complete home inventory was 32% lower, as per realtor.com®'s Weekly Housing Trends report for July 11th.
The dread of COVID-19 exposure is likely the source for individuals keeping their homes off the market, however, many may likewise believe that selling a home right now is a pointless, due to a lack of demand and low-priced homes on the market. In actuality, the most recent insights propose that now is perhaps the best time in years to sell a home for a few reasons.
For starters, buyers outnumber sellers in the housing market, which means it's better to be a seller than a buyer. Furthermore, the aforementioned low housing inventory is another reason why those who do list their homes will enjoy a strong seller's market, characterized by bidding wars that could fetch them a high price.
"Home prices are plummeting."
The statistics show just the opposite: Home prices are actually rising. According to the NAR, the national median price for single-family homes grew 7.7% during the first quarter of 2020, to $274,600.
"Buyers are holding off on home purchases."
According to NAR’s Pending Home Sales Index (a forward-looking glimpse at home sales based on contract signings), pending home sales jumped 44.3% in May, the largest month-over-month increase since the index’s inception in 2001. Record-low interest rates are driving much of the buyer demand. Mortgage interest rates dipped below 3% for the first time in 50 years, to 2.98% as of July 16, according to Freddie Mac.
"Homes can't be viewed in person."
The initial steps taken by states and government officials to slow down the spread of COVID-19 have certainly put a halt to how many operate their business. For many Realtors, in-person home showings and open houses were put on hold temporarily in favor of virtual home tours.
Advent Properties' own Darryl Glass, for example, creates opportunities for his clients to tour homes online with interactive 3D virtual technology. In addition to embracing the innovative virtual tech, Darryl also allows scheduled in-person tours for his clients. These in-person tours require strict COVID-19 safety guidelines to be followed vigorously. The requirements include masks and foot covers to be worn at all times, sanitizing before and after entering the home, and limiting the number of guests to two guests who live in the same household. Many Real Estate professionals have begun to follow suit and require similarly approved COVID-19 safety guidelines for their clients, so now may be the best time to Schedule a tour with Darryl Glass
"Everyone's fleeing cities for the suburbs."
This is probably the most rampant myth of all, and it certainly makes sense from a pure impulse level. In May, the number of views on properties with suburban ZIP codes increased 13%, almost double those in urban areas, according to realtor.com data. However, this does not mean everyone is fleeing to the suburbs.
For one, unless you're extremely wealthy, it's not that easy to pick up and move. While a few companies have announced that their employees can work from home indefinitely, most firms have not decided whether their employees will one day have to return to the office. As a result, many of those people surfing suburban real estate listings might not be all that serious about following through.As always, if you have any questions or concerns about buying or selling in this current real estate market. Please call or text Darryl Glass at (510) 500-7531, email firstname.lastname@example.org, or Schedule a virtual meeting with Darryl here