Consequences of an Unusual Year on Real-estate.

Did you too had an intuition that 2020 doesn’t feel so good since the start? Well at least now we know
this was the year we will remember, maybe as the year, whole world came to rest or maybe as the year
economy fell like a stone rolling down a hill, or maybe just the period we stayed home for a year!

Now as most people were stuck in their home for such a long time, which they aren’t usually, we have
learned the value and significance of a house. Some have started loving their home more and started
taking more care of it. Whereas others have realized what their houses lack, if it’s the right fit for them
and what else they’d like in their home. And this has lead to people understanding that they need a new
house which includes everything, their ideal house should have. Now, these kinds of mixed response to
the pandemic have caused real estate’s movement a bit unpredictable. Still, let’s take a look to
understand if it’s a good time to sell or buy a house.

The Beginning.

So in March, everything went to a complete shut down due to fear of COVID transmission, and WHO had
marked it as a pandemic. All these happening, people overnight got quarantined between four walls.
Which was assumed to last for a few weeks or so, but took over half a year in no time. Anyway, people
now had to work, study and do everything from home. And their house got a new meaning it wasn’t just
a place to sleep anymore but their office, their school, college, the world to them. During quarantine,
people developed a sense of understanding of what their ideal houses are and if the current one
matches up the requirement. This combined along with low interests has rocketed the demand for
houses.

Even when everything was shut buyers and sellers were accumulating so much pressure that as soon as
the government let the realty market open, the market’s demand went high and the market was more
active and healthy than earlier. Also, some sellers went a step ahead to start virtual walk-thru tours of
their houses online and some of the deals were closed right over the internet.

When the Real-estate market reopened!

After the lockdown ended, experts predicted the market would plunge, but the market had some other
plans. So as soon as things started opening people wanted to escape of their current situation which
included rental situations, they didn’t want to live with their parents anymore, they didn’t want
housemates, they didn’t want to live in a less than ideal situation, also now their home meant more
than just a house, and so, they wanted a right environment for themselves. And then mortgage rates are

at an all-time low. So buyers began to buy like it was a Christmas sale, which increased the demands of
houses in the market. Consequently, most of the houses were sold within a week or so.

Most agents agree current housing demand outweighs supply, pushing this year’s average selling price
up about 5%, compared to 2019, according to Michigan Realtors data. Our data reflects July closings
were up significantly, compared to 2019.

But how were these sold? Due to pandemic and safety issues, open houses were mostly prevented and
all the procedures took place online till the buyer gets the key. Now some sellers were selling through
real-time video showings, so that, they could answer buyer’s queries to assure them with all their
curiousness. On the other hand, the open houses which were taking place made sure safety measures
were top-priority. Booties were available to cover shoes and face masks were offered right before
entering the house during showings. Lights were left on prerequisites and doors were kept wide open,
to minimize physical contact inside the house, the duration of showings decreased significantly.

So basically all the lows caused by the pandemic were covered up in May, June, and July.

So is it the right time to sell your house?

“When you just don’t have enough of the supply, buyers will start to outbid each other!”

The prices of houses are already raised to a premium, so if you’re thinking of buying a house, it would be
a good idea to wait for the market and prices to stabilize when situations get under control in few
months.

But if you’re a seller and all set to sell your house, then go for it you’ll find a good price and a buyer for
sure. For a better and easier experience, you can sell your house through the online platform, REOZOM,
which will take care of all your legal and marketing processes and give you access to lots of MLS sites.

Written by: Reozom Communications Team