Selling a Home in the Era of the Coronavirus
Should You Sell a Home Now?
Part 2 Sellers
The question comes up often these past few weeks, “Is this a good time to sell our home?” The answers are mixed across the real estate industry, depending on the day and the location of the property.
In Santa Fe and Taos, the real estate market is unique, as the area has a large segment of home owners who come here to retire, downscale or for a more laid-back lifestyle. The luxury high end market is often considered a secure investment compared to the stock market.
The Santa Fe & Taos real estate market was showing a very strong demand, very recently. The desire to live in Santa Fe /Taos area, continues to grow. People from all over the world, still want to live here, not just for its beauty, culture and its security. While recently, some transactions have stalled, the demand has not waned with new contracts being written and new homes coming on the market.
Those sellers who are staying in the market and listing their properties will have less competition, as the scarcity of listings will provide more opportunities for a sale. For Sellers on hold, it is a great time to refinance, as interest rates are very low.
In the era of Covid-19, our office is taking precautions to keep ourselves and our clients safe. For the last couple of weeks, out of concern for health and safety, we have promoted online virtual solutions using technology such as Zoom meetings with virtual tours: as well as FaceTime, and Facebook Live streaming. We have mostly eliminated or reduced paper brochures and documents to prevent unnecessary transmission risks and to protect our environment by making PDF’s available and using Authentisign for closing documents. We are using different protocols for showing properties through virtual reality 3D walk-throughs and virtual tours. We have successfully closed properties where buyers have only toured properties without being physically in the space. Virtual tours can happen throughout the buying/closing process such as home inspections.
Regardless of whether you are a seller or buyer, this time might be a good time to make a lifestyle change and we are here to serve you in this transition.
I would like to hear from you. What are your needs? How can I help you?
Below is some information from sources around the internet:
Resources & Links:
|Santa Fe Information:||New Mexico Information:|
|Santa Fe Information »||https://nmhealth.org»|
|Taos Information:||US Centers for Disease Control:|
Real Estate Market Opinions from the online journalists:
“In economic downturns and stock market volatility, real estate has historically offered a stable shelter for wealth.”
“Zillow conducted a study on housing during previous pandemics and concluded that while home sales dropped dramatically during the pandemic, home prices stayed about the same or suffered a slight decrease. This makes intuitive sense because it’s harder for prices to change when there are few transactions. In short, previous pandemics have simply put the housing market on pause.”
“Prospects of a looming recession as a result of the economic effects of the virus may also push home buyers onto the sidelines.”
“In Houston, Texas, “currently, most of the market is in a state of shock or denial, the first two of the seven stages of grief,” says Paige Martin, Keller Williams broker and team lead with Houston Properties Team. She added that in some neighborhoods, multiple offers keep streaming in.”
“Meanwhile, across the U.S., some sellers continue to invite private tours. Others prefer to keep strangers away, adopting virtual alternatives to show their properties.”
“Typically the housing market isn’t tied to swings in the stock market, because people don’t buy houses purely as an investment. Housing is a basic need, and the decision to buy one is usually prompted by entering a new stage of life.”
“A newly married couple is moving in together and is buying a house. A couple is having a kid and needs more space to accommodate the baby so they buy bigger house. Empty nesters have more house than they need after their kids go to college, so they downgrade to a smaller house.”
“A stock market correction doesn’t change these circumstances for people. Even in full-blown recessions, the housing market is incredibly durable. In some previous recessions home prices have actually gone up.”
“Another thing to consider is that as the stock market drops, investors look for safer places to park their wealth, hence the bond market going up. The stock market drop can have the same effect on the housing market. Roofstock, a platform investors use to buy and sell single-family rental properties, has seen huge spikes in web traffic since the outbreak of the virus, as global investors look for less volatile investment options.”