3 Things That Have Changed in Real Estate Since the Pandemic (and 3 Things That Haven’t)

Dated: 04/11/2020

Views: 1281

Hello and Welcome back! We are all still wading through the unknown territory of being quarantined. Truth be told it is stressful and calming all at the same time. It's so nice to not be living at the speed of sound but the unknown ripple effect is somewhat terrifying. Keeping calm and carrying on is the answer at this point in time.

The global COVID-19 pandemic has affected life across the globe. Strict social distancing measures, school closures, and, in many locales, a ban on all non-essential businesses have turned people’s lives upside down and thrust us into a surreal existence where we’re spending nearly all of our time at home.

From a real estate perspective, it would be disingenuous to say that nothing has changed. Great agents are honest at all times, even (especially) when it’s difficult.

That said, there’s no indication that we’re in (or headed toward) a housing crisis like the once-in-a-century 2008 collapse. And, by all accounts, the fundamentals of the housing market remain in place, despite the safety precautions enforced by health and government officials. For my area, Spokane, WA., houses are still selling within hours of being listed. There are lines of people waiting to get in to see them and for others not wanting to leave their homes, video tours have been the trend. 

The following list may help you better understand what’s changed and what hasn’t in the world of real estate:

What’s changed:

1. Access to showings

In many places, the process of showing a home has changed. Some states have put limits on the number of people allowed to gather in one place, which has impacted open houses. Additionally, sellers, buyers, and agents are taking more precautions to keep themselves safe, with more cleaning, access to protective gear, and enforced distancing measures becoming the norm. Digital-only showings are also growing in popularity, although they’re still relatively new. Despite all this, if there’s a home you’re interested in seeing, it’s absolutely possible to make it happen.

2. The closing process

Much of the work that needs to be done between going under contract to sell or buy a house and the closing can be done remotely and electronically. But there are many things that need to be done by many people throughout the process. From the mortgage, to the title work, to inspections and appraisals, getting to the closing table depends upon a lot of people doing their job. Social distancing and working entirely remotely has a certain learning curve while everyone involved figures out how to get their end of things done. So, the process may take at least a little longer, and change as everyone figures out the best way to handle things. The upshot to this is that it could create better, more efficient ways of doing things moving forward.

3. Some mortgage products

Perhaps the most impactful changes in the real estate industry are happening in the mortgage market. The conditions on certain products are being tightened, and some lenders are temporarily exiting the market altogether. Jumbo loans (a type of financing where the loan amount is higher than the conforming loan limits set by the Federal Housing Finance Agency) seem to be feeling the most impact, while conventional loans, which are considered less risky, have been less affected. If you have questions about getting pre-approved, you should contact a mortgage professional who can help you better understand your options.

What hasn’t changed:

1. People’s dreams

Even when the whole world comes to a stop, our hearts and minds do not. We all have dreams, whether it’s owning a fabulous condo in the city, a sprawling victorian with a rolling lawn, or a starter home that we can finally call our own. A pandemic doesn’t change that, even though it can help put things in perspective and remind us of what matters most. But don’t let the strange times we’re in stop you from daydreaming and working toward those dreams. A pandemic is temporary; our hopes are not.

2. Housing demand

There’s been a well-documented housing shortage for years, and there’s no indication that the fundamentals have yet changed. That said, every real estate market is unique, and what holds true on a macro-level may not hold true in your local area. Regardless of the specific market and overall demand in your area, people always need homes, despite a pandemic. So, if you want to sell, there’s likely a buyer for your home. And if you want to buy, there’s likely a seller who’d love to sell.

3. Our desire to help

Most agents eat, breathe, and sleep real estate, and aside from looking out for our loved ones and wishing for a healthy and safe resolution to this mess, that hasn’t changed. We want to help you with your real estate needs because we’re passionate about what we do, and it’s likely that our newfound home-time has coincided with a lot more real estate research than it has with cleaning or learning how to play the guitar. Although, that being said, I have managed to do some deep cleaning. It's a lofty goal but I would love to always have my house show ready. Hard not to when I look at video tours all the time. Plus I welcome my clients into my home all throughout the day on zoom and facetime as we discuss homes on the market and do video walkthrus. Times have changed and I am embracing it ALL!

Thank you for coming back! Please let me know if there is a topic you would like covered. Also, if you have some before and after pictures you would like featured in a future blog I would love to see them. 

I'll see you again soon!

XO,

Kathy Bonnett

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Kathy Bonnett

Buying and selling a few homes in my 20's lit the fire in me that eventually led me to pursuing a career in Real Estate. After receiving my BA in finance I enjoyed working in the financial planning in....

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