Life as we know it has taken quite an unexpected turn due to the coronavirus pandemic. All aspects of daily life have been affected in one way or another, including the ability to buy or sell a home. Fortunately, the real estate market has seen tough times before and, in some ways, has been better prepared for this than many other businesses.
National vs. Local Market
While some areas have been hit quite hard by this pandemic, the local market seems to be adjusting quite well. In Illinois, real estate has been classified as an essential business, but otherwise, normal business operations have changed immensely.
Once known as a very hands-on, face to face, profession, the market has shifted to contactless video tours and drive-by showings. However, local realtors are still optimistic that once the stay at home order has been, lifted things will quickly return to normal.
Even though Chicago based realtors have seen the number of homes available to sellers decrease, they have also noted that motivated buyers are taking advantage of low-interest rates to get the dream home they may not have had the opportunity to get before. Not every city is as lucky as Chicago though, as New York City is struggling to get any sort of transaction going. Since most of the real estate in New York City are apartments and condos it has been virtually impossible to have any kind of showings. To complicate matters further, most virtual showings must rely on previously shot footage that wasn’t necessarily meant for that purpose, which doesn’t give the best impression of the property for sale. To make things worse, some buildings will not allow brokers or buyers into the property for any reason. This has made any transaction incredibly difficult.
Buying and Selling During Questionable Times
It’s no secret that purchasing a home is a huge undertaking in the most normal of times. While there is always the chance for some surprises during your purchase or sale, no one could have predicted this global pandemic.
Just before this pandemic hit, many buyers and sellers were merely days away from closing. Unfortunately, they learned later their closing fell through due to changing mortgage rates and complications. Some lenders have gone out of business due to the pandemic as well, leaving buyers and sellers in limbo with no option but to cancel or start the process all over again.
The uncertainty of what the future may hold is scaring off many buyers as well. With unemployment at an all-time high, it is difficult to be confident that your job is secure enough to get a mortgage. This has also put sellers in a hard position not knowing if it is worth it to keep the house on the market or wait until things improve.
While things may seem grim, the silver lining is that the real estate market has been hit before and bounced back. The same will be true this time around. Buyer and seller confidence will continue to increase over time. Real estate has always been about patience and timing, two things we all have plenty of these days.
If you find yourself in the market to buy or sell do not hesitate to reach out to the professionals at Bell Law for any questions or concerns you may have. We are here to advocate for your during the process.