Why Sellers Should List Now While Inventory Is Low
In today’s turbulent times, one of the biggest questions’ homeowners are asking is if they should sell their property now or hold off until the coronavirus pandemic subsides. On one hand, many buyers are postponing their home search because of financial uncertainty. On the other, sellers are not listing homes because they believe they will not get a fair price.
Those two factors combined, mean there are fewer homes on the market causing prices to increase. If you have been thinking of listing your home, now is a great time to do so. Below are a few reasons why.
An economic recession is widely understood to be a significant decline in general economic activity within a specific region. Indicators of a recession include declines in employment, income, retail sales, and industrial output.
With those facts alone, it is easy to assume that housing markets will collapse, however that is not always the case. By understanding recessions of the past, you can make a more informed decision about whether you should list your property.
The last major economic crisis we faced before the coronavirus pandemic is the Great Recession. This recession is significantly different from today because it was driven by subprime lending that was out of control. Buyers often borrowed more than they could afford, causing home prices to artificially rise to extreme levels.
Many real estate experts have stated that they do not expect the pandemic to devastate the current housing market because it is not limited to the real estate sector. During the mini-recessions of the 1980’s housing prices increased, and the recession during 2001 (the dot-com collapse) also saw increases in home values.
Since 1980, we have faced five recessions, and the only times home prices declined significantly were during 1990 and 2008. It is worth noting that during economic recessions, new home developments are more at risk than existing homeowners that are looking to sell their property.
The reason for this is because new construction developments can be left incomplete due to the developer going out of business. Neighborhoods that have established properties are likely to maintain their property values.
Now that buyers and sellers are looking to minimize in-person interaction, real estate agents are digitizing as much of the home selling process as possible. Virtual home showings are essential to this as they allow sellers to showcase their home to prospective buyers without managing massive crowds.
The process of hosting a virtual home showing is relatively simple. The seller’s real estate agent uses web conferencing solutions such as Zoom, Google Meet, or Facebook Live to broadcast a walkthrough of the home in real-time. During the showing, the buyers can ask questions and request that the agent revisit or home in on specific areas.
Although most buyers will still want to have an in-person visit before making an offer, virtual showings enable sellers to limit in-person interaction to buyers that have a serious interest in the property.
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