We are blown away at how fast the world has changed over the past few weeks. Social distancing is keeping us away from our daily routines, toilet paper is flying off the shelves, and many of us are trying to wrap our heads around what’s going to happen next.
Although we’ve heard many say this will pass in a few weeks, it’s not “business-as-usual” in the real estate industry. People may not want to hear it, but the real estate market WILL see an impact from this. The core COVID-19 issue – the only way to reduce the spread of the virus is to limit face-to-face interactions substantially –– which really hurts commerce and will have a domino effect on the rest of the economy.
What We See
We have not seen a notable difference…yet. But we do expect things to change in the following ways:
- Sales activity will slow – early 2020 showed that housing demand was robust and inventory dropped to all-time lows. It is hard to imagine this will continue even with rates as low as ever.
- Mortgage activity delays – Due to lower-than-ever rates, mortgage professionals are operating 150-200% above capacity and are slammed with refinancing and purchase requests. Businesses cannot continually operate above capacity levels – expect delays.
The Upside
Fortunately, the market was standing on a strong foundation before all of this chaos, so although things are likely to slow, the market can recover when we reach normalcy due to:
- A nationwide deficit of 3.5M new homes means demand is still far greater than supply
- Low mortgage rates equal more buying power
- Low oil/gas prices mean more cash in buyers’ pockets
- Lower global demand for construction material could mean lower prices
- Existing home equity equates to an enhanced ability to upgrade
Recommendations
- Have a plan B. Expect delays and have a backup plan if things just don’t work out.
- Don’t expect prices to go down dramatically under $400K – there were less than 2 months of inventory earlier this month in that price range. Multiple offer scenarios were the norm, sometimes battling against 10 or more offers at a time. But, even if 50% of the demand goes away, that is still 5 offers.
- Laugh and have hope. Enjoy the extra time you get with your family and the other unintended outcomes of your quarantine. Here are our positives for our family (Lindsay is working from home and Logan is out of school):
- More cuddle time with Logan and the pups (and with each other…for now…haha)
- About 30 extra minutes of sleep with no morning commute
- Lunchtime AND early evening walks in this beautiful weather
- Way less laundry to do since we will easily wear the same 3-4 items of clothing all week (minus undergarments)
- Related to #4, working in pajamas
- More lead time to prep dinner and lunches
- Saving money for the much-needed vacation we will all have to plan after this is all over
- The ability to unsubscribe to so many emails due to the number of companies that have emailed me their COVID policy, thoughts, new hours, etc. There were so many lists I didn’t even know I was on.
While the world feels uncertain, we will get through this. We’re always here to answer your questions, or just simply listen to your concerns!
Remember to support your favorite local businesses during this time! Many restaurants around town are offering pickup/delivery options to keep their business afloat. Here are some of our favorite restaurants that we will be supporting:
- Jack Brown’s Beer & Burger Joint: Pickup and delivery for burgers and beer
- Triple Crossing Brewing: Curbside pickup and delivery for bottles, crowlers, and pizza
- Early Bird Biscuit Co: Take out and call ahead curbside pickup available
- Garden Grove Brewing: Delivery and pickup on beers
- Final Gravity Brewing Co: Crowler delivery and pickup
Learn more about which restaurants/breweries are participating in delivery and pickup options and other ways that you can help our local restaurants here:
- Eat Local! The RVA Mage Guide to Supporting Restaurants During COVID-19
- How You Can Help Richmond Restaurants
Stay calm and stay healthy!
Enjoy these photos of Logan we’ve taken while working from home!
