Monday, August 3, 2020 / by Jordana Tobel
To those outside the industry, it may feel different but there are facts and circumstances in today's world that simply make this market unlike any other. Those of us who were around for the 2008 Recession may have some moments that feel like deja vu, but the truth is that this is nothing like the last recession.
Let's dispel the top three myths:
MYTH #1. It's a bad time to sell a home.
Yes, we are in a pandemic and unemployment is an issue, however despite that fact, there are many buyers frantically looking for a place to call home. At the same time, many homeowners are choosing not to sell and thus new home listings plunged 14% in early July compared to last year at the same time. Total inventory is also down 32% year over year. That means the current buyer demand is higher than the seller supply.
If you are considering selling, now is a great time. Chances are you'll sell it quickly and for top dollar.
“Given the pandemic and uncertainty it’s caused, the general sentiment [among some owners] is that now is not a good time to sell your home,” says Danielle Hale, realtor.com’s chief economist. “Yet so far, the data suggests the opposite – that buyers outnumber sellers in the housing market, which means it’s better to be a seller than a buyer.”
MYTH #2. Home prices are dropping.
The last time we were in a recession, the real estate market tanked. This is not like that. Home owners today has considerable more equity and they simply will not walk away from their homes, which is part of what resulted in so many foreclosures. Plus, due to the fact that there is so little inventory and the demand is growing, home prices are actually increasing not decreasing.
During the first quarter of 2020, the national median price for single-family homes increased 7.7% to $274,600.
“We’re seeing home prices (currently) grow faster than pre-COVID-19,” Hale says. “In fact, they are on pace with the home price growth we saw this time last year.”
Don't be stuck in the last recession. It is very likely that the home you are looking at today will be worth even more this time next year. Low interest rates, high demand, low inventory and more are contributing to continued property appreciation.
Myth #3. You can do this alone.
Absolutely not! Real estate professionals will help you navigate the in's and out's of selling or buying a home. We will protect your interests, negotiate on your behalf and make sure the transaction goes smoothly.
Use your Premier Listings Sales Associate as a resource. Let us do the heavy-lifting. We can find information not readily available online and often have access to properties before they are even listed.