5 Ways The Housing Market Has Changed During COVID-19
The ways COVID-19 has changed our daily lives seems endless right now. We’re working from home, schooling our kids from home, picking up food and cocktails curbside and staying a solid 6 feet from our extended family and friends. To say our normal lives have been upended would be a serious understatement, and naturally the pandemic is having an affect on our 417-land housing market.
I’ve gotten tons of questions from buyers, sellers, friends and family about what’s happening in the market, if it’s still a good time to sell, how they should disinfect their home for showings… the list goes on and on. In an effort to help answer some of these questions and share what I’m personally seeing happen in the market, here are the five major changes I’m seeing. I know things are changing rapidly right now, but hopefully this list helps a little!
1. Interest rates are still extremely low.
With a slowing economy the interest rates are remaining low to encourage home purchases. Real estate, banking and title companies are all considered essential businesses, so we are all still working everyday to help buyers and sellers continue with their plans of moving. That means, even if you’re not moving, you can take advantage of the market and lock in a great interest rate for your home loan. But if you’re thinking about moving, there is definitely less competition right now amongst buyers since several of them are holding off on purchasing a home.
2. Showings are more strategic and less impulsive.
While sellers are still allowing in-person showings, many buyers are not jumping in the car and heading right over to look at a house. Agents are previewing properties first without their clients and often filming a virtual tour or planning a video conference to walk their clients through the home if it is a potential option for them. Only then are buyers moving forward with seeing the home in-person while taking necessary precautions like removing shoes, wearing masks and not trying to touch surfaces without wearing gloves.
3. Purse strings might be tightening in higher price categories.
Regardless of a pandemic, many buyers and sellers still need to proceed with a home sale or purchase. In the Springfield market, we are seeing homes priced above $250,000 begin to slow to a more normal time on the market of 30–60 days as opposed to the 2 week or less seller's market we were enjoying. That being said, if you have a unique home that is in great condition and priced right, it might still sell within a day. It just depends on the characteristics of the home.
4. Title companies have new policies.
Typically at a closing, the buyers, sellers, lenders and agents are all in a conference room signing documents, talking, shaking hands and passing out keys and gifts. With COVID-19, title companies have taken on new policies and only allow the buyers and sellers who need to sign into the title company. The rest of us (including children) must wait in the parking lot and practice social distancing. Luckily the spring-like weather has made this new guideline a bit more enjoyable.
5. Same process, more sanitation.
Like the rest of the country, essential businesses are working to ensure the most sterile environments and safety precautions for all. I no longer drive clients in my car to show houses but rather have them follow or meet me in their own vehicle. I also try to arrive at a home early in order to not only turn on all lights but wipe down all door handles and switches with disinfectant before and after showings. When available, some listing agents provide booties and masks for agents and buyers to wear while walking through a home or have visitors leave their shoes at the door.
