3 Things That Have Changed in Real Estate Since the Pandemic (and 3 Things That Haven’t)
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
REALTOR®’s 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.
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 still 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 REALTOR®’s 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.
By
Thomas Gilliam, Neighbor
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