Updated: Apr 9
While this public health crisis* has changed pubic life in general, it certainly did cause some insecurity in the real estate market as well - with many active buyers and sellers wondering about where the market will go from here. Will the housing market be hit like it was by the burst of the housing market bubble in 2008?
First and foremost: Do NOT panic!
2020 is not 2008 for various reasons:
Residential Real Estate was added to the list of essential services during this public health crisis by the U.S. Department of Homeland Security, Cybersecurity and Infrastructure Security Agency on March 28. This means that we are still working -> contact us now
In 2008 and years prior, it was very easy getting a mortgage because the market was over evaluated. This caused many people to buy a home even if they were not able to afford the overpriced homes. Mortgage standards today are nothing like they were back in the housing bubble, although rates are low, getting a mortgage is proven to still be difficult because of the evaluation of the overall market is closer to their real value.
In 2008 the market inventory of homes for sale was high, meaning there were so many homes available that prices did fall. The market inventory of homes for sale in 2020 is quite the opposite, meaning there is a shortage of homes. The market share of new construction homes is increasing as we see less surplus of homes on the market.
Believe it or not but this is a great time for buyers with job-security to speak to a bank/lender about a pre-approval, contact the Realtor you want to work with, and start viewing to determine what style you love (needs/wants/budget) and prepare for the right property to come to market if it isn’t out there already. Buyers will likely experience less competition but also less inventory in these times, sellers respectively less competition but also fewer buyers. Although multiple-offers can still be expected.
While this is great news, you probably ask yourself now:
How can I buy or sell real estate during a public health crisis like the COVID-19 pandemic when the government orders me to stay at home?
This pandemic has drastically accelerated the development of how real estate is marketed. We realized early that today is the new tomorrow and we are well prepared to limit our face-to-face marketing by utilizing
Custom Video Walkthroughs
Live Online Events
3D Home Touring
Furthermore, we are working to integrate Virtual Reality (VR) Home Tours to our VIP Buyers program. This touring program will allow you to virtually see and walk the properties you are interested in from the comfort of your current home.
While not being able to hold an Open House is one of the biggest changes that we see affecting many Realtors, we do not have a problem bringing the Open House to you. We are already enabling our clients to sign documents electronically on their laptops/smartphones in the comfort of their homes for years.
With that being said, we are taking precautions far beyond washing hands, no handshake and social distancing to keep ourselves and all of our clients safe during the process.
There is no doubt the coronavirus has changed the real estate market and we are prepared to keep delivering excellence when it comes to the representation of our clients and the service we provide. Excellence is imperative for us and always will be.
No matter what changes we see, no matter what challenges a client presents – the client's best interest always comes first.
Here For You,
*The outbreak of COVID-19, commonly known as the coronavirus, was declared a Public Health Emergency of International Concern by the World Health Organization (WHO) on January 30th, 2020. The WHO characterized this outbreak a pandemic on March 11th, 2020. USA, White House: Donald J. Trump, President of the United States declared a National Emergency in response to the novel COronaVIrus Disease (COVID-19) outbreak on March 13th, 2020. Six days later, on March 19th, California Governor Newsom and the State Public Health Officer issued an Executive Order N-33-20 requiring all Californians to stay home.
On March 27th, the Public Health Officer for the County of San Diego ordered all residents of San Diego County to follow the aforementioned Executive Order N-33-20 and that violation of this order is subject to fines, imprisonment or both. 5 days later, San Diego Sheriff Bill Gore announces stronger enforcement of #SocialDistancing and the public health orders. The Sheriff also announced that local authorities will begin enforcing the public health orders including social distancing. The maximum penalty for any violation will be a $1,000 fine and up to 6 months in jail.
Around April 3rd, all towns along the beautiful San Diego County coastline closed their beaches to support the brave medical and health care workers, doctors and nurses, by preventing further spread of the virus at an increased rate to flatten the curve.