Real Estate Needs To Know During COVID-19

Steven M. Lutz

Author: Steven M. Lutz

POST DATE: 8.6.20
Ccha  Real Estate

As recently as Tuesday, Aug. 4, the average mortgage refinancing rates for 30-year fixed and 15-year fixed refinances both dropped, as did the average rate on 10-year fixed refinance mortgages. As with several industries, real estate is seeing significant shifts as a result of the Coronavirus epidemic, now into August. CCHA is here to shine a light on a few of the latest trends shifting the real estate industry, for those looking to buy or sell.

Ccha law real estate during the Coronavirus
  1. Buyers and sellers are spooked — According to Real Trends, when the pandemic lockdown started in March, buyers and sellers backed slowly away from the market. A month later, they’re in full retreat. In March, only 3% of homeowners said they’d indefinitely paused their plans to sell their home because of the pandemic; just a month later, that percentage had rocketed up to 27%. That’s a 9X increase, suggesting that sellers’ confidence in the market fell off a cliff sometime between March and April. The same trend applied to sellers with homes already listed. In March, 13% of sellers had pulled their listings off the market because of the pandemic; thirty days later, nearly a quarter of sellers (23%) had withdrawn their listings.
  2. Interest rates are LOW — With interest rates at all-time lows and buyers returning to the market sporting lofty post-quarantine housing wishlists, sellers appear to be the missing link to a strong summer housing market. Is it the right time to buy? According to FORBES, median listing prices are 5.6% higher than one year ago, and more than a full percentage point above the levels just before the COVID pandemic shut down the economy. They add, with the economy opening up since May, it’s likely any delay in purchasing a home will result in paying a higher price.
  3. A return to normalcy will mean radically different things in different areas of the country — However, noted an upward trajectory nationwide as we enter mid-summer, noting that “the usual spring seasonal peak in May has shifted to August as buyers and sellers seek to emerge from the initial disruptions.” Additionally, they suggest that 30 of the largest 50 markets in the country are now above the recovery benchmark, with the overall index showing greatest recovery in New York, Boston, Seattle, Las Vegas and Philadelphia.

When it comes to any real estate matter, CCHA partners with you to develop a plan that protects your financial investments and helps accomplish your goals. Whether a first time home buyer, someone who needs help selling their house, or a seasoned commercial real estate professional, it is crucial that you obtain legal representation — like that from the experienced real estate attorneys at CCHA — to protect your investment and your rights, and achieve your goal.