Buying or Selling A House During Covid-19 (Coronavirus)
COVID-19 (Coronavirus) continues to transform the world, from how we conduct business to how we live our lives. While this may be a time of uncertainty, we felt it was more important than ever to be able to share our insights on the Real Estate Market in the Philadelphia Area. This virus has already received enough negative attention, so lets talk about some of the more positive outcomes. Here are just a few of the things we thought we'd share to help clear up any anxiety and confusion.
Changes In The Real Estate Market
For a few months now, nearly every industry in the country has been affected in some way from this virus. As for Real Estate, traditionally, the spring & summer seasons are the busiest in regards to buying or selling a home. Real Estate experts believe we are not headed for another crash, merely a slow down in overall transactions.
- March and April have ranked as the top two months for online search activity relative to inventory in the last three years. - People are still looking for homes!
- Mortgage rates have hit an all time low with the average rate of a 30-year fixed-rate mortgage dropping to 3.29%
- Transactions are still being made albeit in a far slower time frame.
- Demand continues to outpace inventory.
Are We Headed For Another Crash?
While the economy has reacted quickly, with most indicators pointing to a recession, it's important to compare our current situation to historical data. Is the 2008 recession even a fair comparison?
Most data shows, No, theres not much in common.
The market has already reacted to current coronavirus pandemic. We are in a period of economic disruption for businesses, as many people's lives are put on temporary hold. Unlike the stock market, the real estate industry reacts far more slowly to changes such as these. There will not be an immediate fall in home prices nor interest rates, however do expect some changes the longer this state of disruption continues. While this may be applying negative pressure to the economy, we are not seeing an existential financial crisis like that of 2008. The Banks are not failing because they have protections in place. Federal and state governments continue to provide stimulus to millions of Americans.
Unfortunately, there is not a definitive answer to some of these questions, but we can follow historical data and trends. If this disruption last only a few months, price cuts will be minimal as inventory is already very tight in Philadelphia. This may also create a build up in demand that could potentially boost property values due to competition. All signs point to a more "normal" recessional period.
How Our Team Can Help You
The Gary Mercer Group has changed a lot during this pandemic, the biggest difference being, we've gone virtual!
Currently in Pennsylvania, real estate transactions are considered a non-essential business. All the aspects that come with buying a home, such as showings and inspections are prohibited from occurring in person. But where there is a will, there is a way. Safety has turned into the number 1 priority therefore we have moved every service to an online platform.
Whether you are buying or selling a home, we have over 15 different agents that will help make this process a breeze. With specialities in first time home buyers, new construction, home resale, and housing flips to name a few. Our sales representative will be able to assist in placing you with one of our top agents that best fits your needs. Because we can't meet face to face, we will meet you screen to screen! This is the perfect moment to build a relationship with our awesome team members!
Once you've decided on a house (buying or selling) we will set up an appointment to take you on a tour. Our homes all have professional photography and because of the current state of the market we insist on 3d tours. These tours provide you with a 1:1 scale of the actual houses. We will go over all the details on a specific property and address and questions or concerns you may have.
We understand that its hard to beat that feeling of walking through that house you deem "the one" but this alternative has really been a huge success for some of our most recent homebuyers and sellers. If you are selling you homes, it is essential that these 3d walkthroughs take place to capture your property in its best light possible.
Congratulations! You won your offer or someone bid on your house! Now comes the daunting task of filling out documents (Believe us, its really easy!). The funny thing is this stage in the process was already moving digitally. The forms we send make it extremely easy to read over contracts and mark signatures. Electronic documents are the way to go not only for your security, but they actually help speed up the process.
The OPs Team Difference
We employ a full time operations team that helps make all of our real estate transactions go smoothly. We also have a full time marketing team that will help boost your property to the top of searches. From Facebook posts to key data input for search engines, we will optimize your property from the ground up so that you are receiving real attention on your listings from quality homebuyers.
Philadelphia's Real Estate Future
We are in a period of uncertainty, but what we do know, people are still shopping. We've had multiple properties closed on site-unseen! For over 30 years now, The Gary Mercer Group has navigated many shifts in the market. Word's like "recession" may cause anxiety, but in reality they end up helping us improve our operations to better serve our clients. Really, the most unfortunate side effect of this pandemic so far is that currently, we can't have any more community events.
Community is everything to us! Without it there would not be a Gary Mercer Group... So for now stay safe, we will talk again soon!
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