The Subprime Crisis: What It Means Today

 The Subprime Crisis: What It Means Today

Anyone who follows real estate knows that 2020 started off with a bang, with upticks in home sales and prices. Then, in early March, the COVID-19 outbreak took hold, with the stay-at-home orders, staggering job losses, economic slowdowns, and uncertainty of home buyers and sellers across the country.

That was then, as they say, and this is now. With the COVID-19 vaccine, most experts agree that the housing market is poised for a strong comeback and a good spring home buying season. In fact, experts agree that it’s already underway despite the nationwide social distancing guidelines. This is due, in great part, to the resourcefulness of sellers and a wiliness to find work-arounds to issues, such as drone home tours and other solutions. But, beyond these simple explanations, it also indicates a home buying public that is itching to buy new homes, regardless of the situation. If you need to, get more information.

But what About Prices?

Homes are still for sale. Everybody knows that. it’s the other half of the equation prices that has many buyers and sellers concerned. Fortunately, experts agree that anyone who is concerned about selling a home should not be worried about having to slash the price of their home to attract a buyer. Instead, they insist, it’s COVID that is slowing things down, which seems to be losing its impact thanks to the vaccine that is quickly making its way across the country. As a result, prices should not be a problem once buyers return to the market. A price cut on a given home might speed up a sale, but it won’t necessarily ensure a sale will happen immediately.

What About Home Inventory?

Simply stated, home inventory nationwide has been slightly low but, again, experts are predicting that this is due to the COVID restrictions and not to the actual homes for sale. Homes are available but might not necessarily be on the market. After all, why have a home on the market at a time when stay-at-home orders prevent people from coming to see them? This situation will no doubt change once the orders and other restrictions are lifted, which is likely to be sooner rather than later.

As mentioned before, there are some exceptions, such as those sellers who opt to sell their home with showings using drones and other technology. This is obviously the result when, in March, shortly after the pandemic took hold, Realtors noted an increase of more than 500 percent in virtual open houses. Further, by the following April 9, virtual home tours made up one-third of all tour requests and compared to only 0.2% at the beginning of the pandemic.

An Objective Viewpoint

Given the situation, it is understandable that people are skittish about the market, but this is only natural when you consider that a home is the biggest investment most people ever make. It’s only natural, therefore, that most buyers want to actually see inside what they are buying.

Whether someone is a buyer or a seller, it’s important, at least for the time being, that everyone adjust their expectations. This is not to say that homes will or won’t sell and for how much, but much depends on the course of the pandemic and a home-buying public that all indicators show is anxious to buy.

Danny White