We have dedicated this edition of All Things Home to the pressing question many friends and clients have asked us over the last few weeks:
How is the real estate market doing?
Everyone is astonished by our answer. “It’s strong and active with virtual presentations of new listings and crafted social-distancing showings leading to strong offers, quick sales, and successfully closed escrows.”
So, what accounts for this surprise? Here’s the next answer:
Buyers jumped into the market expecting prices to crater. But this didn’t happen. Why? Because sellers took a bigger step back than buyers did, creating a shrinkage of supply and triggering a slight rise in prices throughout Southern California. Even in this condition, buyers have continued to enter the market, many of whom found themselves outbid prior to COVID-19, expecting less competition. Personally, we have encountered this ‘surprise’ in the real estate market with new listings that have sold quickly and over-asking price along with a high volum in showings both virtually and physically inside the social-distancing parameters.
What does this indicate for sellers and buyers?
For Sellers, there is an imbalance in the market that creates opportunities to be taken advance of . Opportunity shines for listings standing apart in this landscape of limited inventory. A critical element, more so than ever before, is the aspect of virtual presentation.
For buyers, there is great advantage to be taken hold of with the historically low interest rates, less competition and the new levels of comparative ease for virtually exploring their next home. More recently, Los Angeles County has lifted the ban on in-person showings and we are confidently and cautiously showing properties while instituting and observing strict protocols for social distancing and sanitation.
This pandemic crisis has precipitated a structural shift in our living and working arrangements. Less commuting and more remote working will create an attractive draw to our communities and neighborhoods. To our sellers and buyers we make this prediction: “Our homes will take on more importance than ever before as they become live-work environments.”
So, yes the real estate market is not only strong, but thriving as well, and we’re here, as always, to help you both navigate it and be successful int it.
All the best to you,
John and Tammy Fredrickson
P.S. Here are two links that showcase our virtual presentations of homes: