For several months now, people have dealt with the medical and economic crises that COVID-19 has brought. Internet sources are not helping the situation; information online can be misleading at best and harmful at worst.
The real estate industry is no exception—various half-truths persist about the housing market today.
5 Myths About Today’s Real Estate Market
Here are five persistent myths about the real estate market during these times, and what mortgage brokers say you should realistically expect instead.
- You cannot sell your home right now. The most pressing reason people take their homes off the market right now is fear of exposure to COVID-19. People would prefer to sell later when the situation is more stable—when there is less likelihood for transmission, or when the economy stabilizes. Others assume that there will be few buyers and low prices due to the lack of demand. However, this could be one of the best times to sell your house. The data suggests that there are more buyers than sellers at present, making real estate a seller’s market today. With a low housing inventory comes the possibility of bidding wars and the prospect of earning the best price for a property.
- Myth #2: House prices are trending downward. The latest news shows the opposite; in fact, house prices are increasing. The NAR reports that single-family homes rose in median price by 7.7 percent in the first quarter of 2020, due to low mortgages. When there are low rates, people enjoy a boost in their buying power—coupled with the fact that there are fewer houses on the market, it can result in higher prices.
- Myth #3: People are putting off buying homes. The NAR’s Pending Home Sales Index predicts home sale rates based on contract signings. It records a 44.3 percent increase in home sales in May of this year. It is the most significant month-over-month increase tallied since 2001, which is when the index began. Note that this is not a permanent trend. Since the situation with coronavirus is nowhere near stable, market booms are subject to broader fluctuations in the economy.
- Myth #4: It is impossible to do home viewing. Many restrictions have eased across the country, and homebuyers can look at listings in person. At present, real estate agents are taking protective measures for everyone involved in a sale. For example, an interested buyer must comply with the broker’s physical distancing guidelines. These may include a COVID-19 disclosure form and a limitation of liability form. Furthermore, brokers would require gloves, masks, shoe coverings, and hand sanitizer onsite.
- Myth #5: People are leaving the cities in droves. The most persistent myth is that people are now leaving urban centers to make physical distancing easier for their families. Although it makes sense, not everyone who wants to leave the city is doing it right now. One reason is that moving to another city requires more preparation. Not all families can easily find a job in another place, and firms have not let go of the possibility of one day returning to physical offices. Those who surf real estate listings might not be serious about moving. Some could have it at the back of their minds while monitoring the developments with the pandemic, deferring significant decisions.
Buying a Home with Your Los Angeles Mortgage Broker Shannon Christenot
The COVID-19 pandemic has brought so much instability to our lives, and people might be wary of any more reorganizations. Though moving homes is not as grave a difference as the other things this season has brought, it can still cause changes for any family. As such, you must have the right timing and the best advice from an experienced real estate agent.
Finding the perfect home is a challenge in normal circumstances, and it is even more so during times like these. Trust Shannon Christenot to help you locate the best lenders in your area. As one of the top mortgage brokers in Los Angeles, Shannon can connect you with a large network of lenders specializing in everything from FHA, VA, fix and flip, and more. Contact the team at (818) 601-2231 to get started.