How Will Corona Virus affect the Real Estate Market ?

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Topic Author
TonyDee
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How Will Corona Virus affect the Real Estate Market ?

Post by TonyDee » Fri Mar 13, 2020 3:51 pm

Hi All,
Okay, I've been googling around to see what the experts are saying about Real Estate in relation to the Corona Virus.
So what I'm seeing is the belief the rates are so low that it's a good time to sell / buy but I'm not so sure.
I'm supposed to break ground this coming week on a new house that'll probably be ready to close July / August.
I haven't put my current home on the market yet but the typical amount of days for my area (northeast FL) is 60 to 90 days
so I was planning to do that this week.
I was thinking of asking the builder to delay construction if they can until this plays out because I'm thinking everybody is so
panicked right now that the last thing they're thinking about is moving / buying a house. So my feeling is it may take considerably longer to sell
like 6 to 9 months. And I do need the proceeds from my current house. Renting it out is really not an option.
I'm trying to avoid the scenario of my new house being ready to close and mine hasn't sold.
I've gotten great advice on the BH forum in the past so I would appreciate any insight and advice.
Thanks so much,
Tony Dee

aristotelian
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by aristotelian » Fri Mar 13, 2020 3:56 pm

It could take a lot longer than 6-9 months. How much have you put down on the new house?

CMD1
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by CMD1 » Fri Mar 13, 2020 3:57 pm

We are under contract to sell currently. It likely will depend on one of two things - do we see wide spread layoffs and do banks stop doing loans like we saw for a while during the great recession.

Topic Author
TonyDee
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by TonyDee » Fri Mar 13, 2020 4:04 pm

aristotelian wrote:
Fri Mar 13, 2020 3:56 pm
It could take a lot longer than 6-9 months. How much have you put down on the new house?
40K
Thanks

phxjcc
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by phxjcc » Fri Mar 13, 2020 4:32 pm

RE is all local.

The attention span of the public is about 1 week.

In California RE is hot because of no, nada, zilch decent inventory.

I hear the same about Nashville, and north Dallas.

Real world, people will move and need a place to live.

If fact the lack of inventory may increase because of the COVID-19 panic.

Which could drive up prices.

In times like this, cash is king.

Put yours on the market and find out.

rage_phish
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by rage_phish » Fri Mar 13, 2020 4:58 pm

We cancelled our plans to list our house at the end of this month and buy a new one. No idea if that was the right call

But we were in no rush and there was too much uncertainty for us

kjacobs
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by kjacobs » Fri Mar 13, 2020 5:40 pm

We are in the same position - signed for a new build in early January and were planning to sell in late March, renting until the home is built by the end of September.

When I saw the first cases appear in Seattle, I rushed to list it (knowing things would get worse, and may not recover in 4-6 months when we need to sell) and went pending in 6 days for a reasonable amount - more than the conservative numbers I'd ran in my new home calculations.

We've lined up the rental, but are going to watch the market for 6 months, essentially. If we walk on the new house (which is in a builder community), we'll lose our deposit of ~$11k. If the new new home is worth ~$30k or so less than we signed the purchase agreement for, I'll likely go through with it, as we spent time picking the lot and customization. If the market value is >$50k what we signed to pay, I'll have a pretty hard time justifying closing on it...

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Sandtrap
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by Sandtrap » Fri Mar 13, 2020 9:58 pm

Every day you wait to list your home for sale, is 1 day too late farther down the line.

Ignore the Corona Virus in this matter.

j :happy
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CoastalWinds
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by CoastalWinds » Fri Mar 13, 2020 10:19 pm

As layoffs and unemployment start to increase, I would think that demand for large purchases would decline rapidly. Homes would be at the top of this list, IMHO.

If your job was shakey or you feared it could get shakey, would you commit to staying in one spot for years and leveraging up?

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Cubicle
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by Cubicle » Fri Mar 13, 2020 11:02 pm

Tough situation. Buying pending selling. If you cannot float 2 mortgages for a "while", would/could you rent the old home? If not I'd consider "restructuring" your time frames.
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psteinx
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by psteinx » Fri Mar 13, 2020 11:09 pm

My (elderly) parents tentatively want to put their house on the market in September (but don't really need to sell it until ~November because that's when they'll be moving into senior living). I suspect the real estate market will cool off a lot in the next few months. I wouldn't be surprised if the inventory of houses on the market grew, buyers dropped off, and we see at least a miniature version of the 2008-09 housing market troubles...

rage_phish
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by rage_phish » Sat Mar 14, 2020 12:09 am

Sandtrap wrote:
Fri Mar 13, 2020 9:58 pm
Every day you wait to list your home for sale, is 1 day too late farther down the line.

Ignore the Corona Virus in this matter.

j :happy
What?

warner25
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by warner25 » Sat Mar 14, 2020 12:25 am

Well, for anyone near a military base, the DoD has suspended all movement of service members and families until at least May. About 1/3 of us move every year, so it's a big deal and will definitely distort real estate markets somehow. People who were in the process of buying or selling or terminating their leases are now scrambling. DoD seems to be hoping desperately to prevent this from spilling over into May, June, and July when the number of people moving normally peaks.

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mrspock
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by mrspock » Sat Mar 14, 2020 12:32 am

I would proceed. If things get better you win because the price will be stable “ish”, if things get worse, you win because the price could keep going lower and you’ll be happy you got what you got.

I don’t see how you lose here? :)

manuvns
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by manuvns » Sat Mar 14, 2020 12:58 am

https://finance.yahoo.com/news/housing- ... 58643.html

Coronavirus fears will depress house sales this spring, one expert predicted, with some jittery buyers and sellers changing their plans as the traditional home-buying season gets underway.

Freetime76
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by Freetime76 » Sat Mar 14, 2020 7:50 am

Sandtrap wrote:
Fri Mar 13, 2020 9:58 pm
Every day you wait to list your home for sale, is 1 day too late farther down the line.

Ignore the Corona Virus in this matter.

j :happy
Thanks for saying this - that’s what our agent told us when we listed in December (no advantage to waiting). My opinion was: we can’t sell it if nobody knows it’s available for sale.

We are playing the waiting game (rural, upper midwest)...par for the course in that market. I monitor it, and a whopping 15 homes are listed in our type of place (only 1 = ours that’s a horse property). That’s essentially none. Only adding details to head off discussion about the dreaded “stale listing” [cue ominous music] doesn’t apply in this case. :wink:

Freetime76
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by Freetime76 » Sat Mar 14, 2020 8:04 am

TonyDee wrote:
Fri Mar 13, 2020 3:51 pm
Hi All,
Okay, I've been googling around to see what the experts are saying about Real Estate in relation to the Corona Virus.
So what I'm seeing is the belief the rates are so low that it's a good time to sell / buy but I'm not so sure.
I'm supposed to break ground this coming week on a new house that'll probably be ready to close July / August.
I haven't put my current home on the market yet but the typical amount of days for my area (northeast FL) is 60 to 90 days
so I was planning to do that this week.
I was thinking of asking the builder to delay construction if they can until this plays out because I'm thinking everybody is so
panicked right now that the last thing they're thinking about is moving / buying a house. So my feeling is it may take considerably longer to sell
like 6 to 9 months. And I do need the proceeds from my current house. Renting it out is really not an option.
I'm trying to avoid the scenario of my new house being ready to close and mine hasn't sold.
I've gotten great advice on the BH forum in the past so I would appreciate any insight and advice.
Thanks so much,
Tony Dee
Tony Dee - I don’t think you’re going to be able to time it exactly, so instead make sure your contingency plans are in place. Have you considered renting in the interim? Not convenient, but you can control the timing at least.
What if construction is delayed? (Like that never happens, right?) What if you don’t sell? So, if you *need* the money, then that house had better be sold. We would be getting the house ready for photos/showings and then list it.

The only feedback I have heard directly about the virus is that the market instability is causing some people to wait and see, Doesn’t apply to starter homes so much (no major investments at that point in life, and low interest rates are enticing). This info came from the upper midwest, where there are cases of virus in the town. And yes, there are closed schools and runs on toilet paper...

Twinsfan10
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by Twinsfan10 » Sat Mar 14, 2020 8:24 am

Actual effects of viral outbreak will be minimal (assuming it is no worse then 2008/2009 swine flu). Panic caused by this virus who knows. Most of the problems are caused by panic not by actual problems. The same can be said of a lot of other depressions/recessions/bank runs etc.

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Re: How Will Corona Virus affect the Real Estate Market ?

Post by fredflinstone » Sat Mar 14, 2020 8:34 am

I predict a severe economic contraction due to coronavirus (increases in layoffs, unemployment, bankruptcies, foreclosures). If that happens, real estate prices obviously will fall substantially.
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Isabelle77
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by Isabelle77 » Sat Mar 14, 2020 8:36 am

We are supposed to list in late April. Our realtor seems to think it will be fine, our little town (outside of Boston) had two bidding wars this week. Rates are low and inventory here is very tight. Now if massive layoffs start, things will obviously change.

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Re: How Will Corona Virus affect the Real Estate Market ?

Post by fredflinstone » Sat Mar 14, 2020 8:46 am

Twinsfan10 wrote:
Sat Mar 14, 2020 8:24 am
Actual effects of viral outbreak will be minimal (assuming it is no worse then 2008/2009 swine flu). Panic caused by this virus who knows. Most of the problems are caused by panic not by actual problems. The same can be said of a lot of other depressions/recessions/bank runs etc.
That is a big assumption. Did you hear reports that 100,000 people in Ohio are already infected? https://www.news5cleveland.com/news/con ... oronavirus

They are expecting cases to double every six days.

Unless Ohio is different from the rest of the US, we may have 3 million infected Americans already, with 3 million new infections in less than a week. Keep in mind the mortality rate is around 1-2 percent -- 50 to 100 times higher than that of swine flu. https://www.reuters.com/article/us-flu- ... T720130125
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F150HD
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by F150HD » Sat Mar 14, 2020 8:50 am

TonyDee wrote:
Fri Mar 13, 2020 3:51 pm
Hi All,
Okay, I've been googling around to see what the experts are saying about Real Estate in relation to the Corona Virus.
So what I'm seeing is the belief the rates are so low that it's a good time to sell / buy but I'm not so sure.
I'm supposed to break ground this coming week on a new house that'll probably be ready to close July / August.
I haven't put my current home on the market yet but the typical amount of days for my area (northeast FL) is 60 to 90 days
so I was planning to do that this week.
I was thinking of asking the builder to delay construction if they can until this plays out because I'm thinking everybody is so
panicked right now that the last thing they're thinking about is moving / buying a house. So my feeling is it may take considerably longer to sell
like 6 to 9 months. And I do need the proceeds from my current house. Renting it out is really not an option.
I'm trying to avoid the scenario of my new house being ready to close and mine hasn't sold.
I've gotten great advice on the BH forum in the past so I would appreciate any insight and advice.
Thanks so much,
Tony Dee
I would.

I have been doing some electrical work in a barn and needed some parts so ran to a local big box store....the items I needed were not in stock and as they were manufactured overseas, I was told they were unsure when they might be in stock. And it wasn't a 'hot' item that folks would hoard and buy in quantity...

I'd hate to start building a home and then have it 'paused' as contractors cannot get building materials. Seems like a risk (to me)

Granted I have not yet run to other box stores for parts......but I'd have to guess this will ripple. Unsure of the timeline.

crg11
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by crg11 » Sat Mar 14, 2020 9:16 am

It’s an interesting time for sure to be looking for a house.

We have to upgrade our house this year as another kid on the way arriving in the later half of the year and our current house is way too small. We want to be settled before the baby arrives.

Our market here is so hot, houses go on the market on a Wednesday and an offer accepted on the following Monday. We haven’t put our current house on the market, but expect it will likely sell in a similar timeframe. Well, at least that was the plan until this past week. No idea what’s going to happen now with the real estate market given COVID-19. Could see the market cooling as people decide the uncertainty is too risk, which would be bad for selling but good for buying. I can also see things continuing for a bit since inventory is still so tight that it’ll take awhile to accumulate.

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Watty
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by Watty » Sat Mar 14, 2020 9:25 am

Several houses in my subdivision were listed for sale last week and the listing prices seem to be on the high side.

It is normal for more houses to come on the market in the springtime here in suburban Atlanta but my impression is that they may have moved up the listing dates.

One of them is already in a sale pending status after being listed for about four days.

Hubris
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by Hubris » Sat Mar 14, 2020 9:28 am

We just closed on purchase of a house yesterday. We’ll relocate in about 6-7 weeks then list our house for sale in a market with very little inventory. If no takers at a reasonable price, then we’ll rent it for 6-12 months.

For our local real estate market, I can see potential destabilizing and stabilizing effects. For destabilizing effects, job and stock losses and/or mortgage markets turmoil may reduce demand and prices. On the other hand, lack of inventory, lower rate mortgages and a potential freezing of other sellers (like someone else posted up thread) could keep demand and prices up.
Hard to say now what the result of all these factors will be.

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Re: How Will Corona Virus affect the Real Estate Market ?

Post by JAZZISCOOL » Sat Mar 14, 2020 9:29 am

fredflinstone wrote:
Sat Mar 14, 2020 8:34 am
I predict a severe economic contraction due to coronavirus (increases in layoffs, unemployment, bankruptcies, foreclosures). If that happens, real estate prices obviously will fall substantially.
What data do you base this on? :D

veggivet
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by veggivet » Sat Mar 14, 2020 10:05 am

People are cancelling open houses left and right. Who would want a bunch of strangers walking through your house in this situation? Real estate agents are encouraging online walk-through videos instead. There is a very good chance real estate prices will suffer more than the overall economy in a recession, despite very low interest rates.
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quantAndHold
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by quantAndHold » Sat Mar 14, 2020 10:10 am

Are you still living in the house? If you are, do you want a lot of strangers coming in and touching things?
Yes, I’m really that pedantic.

justpullin
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by justpullin » Sat Mar 14, 2020 10:33 am

I am an orange county realtor and I've noticed a complete drop in inventory. I would list ASAP to avoid dropping prices. I know in the under $1,000,000 range homes are still flying off the market if priced right. I have buyers ready to go, but everything is slowing!

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Re: How Will Corona Virus affect the Real Estate Market ?

Post by mrx » Tue May 26, 2020 2:37 pm

With tech companies announcing forever work-from-home policies and expanding in LCOL. I am considering selling my home in a HCOL and rent for a year or two as I am suspecting tech centered locations will be hit the hardest (think Silicon Valley). My friends who rents already have plans to move out of the bay area at least for this year to save 50% of their rent!

My wife doesn't like the idea since life is already disrupted enough so I am thinking this will be a missing opportunity for us. I just hope the price drop is not big enough to make me regret this.

Do you think this is over reacting?

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Re: How Will Corona Virus affect the Real Estate Market ?

Post by willthrill81 » Tue May 26, 2020 2:39 pm

willthrill81 wrote:
Tue May 26, 2020 10:33 am
Clark Howard discussed the national home buying/selling issue yesterday. Basically, he argued that once the virus started spreading and lockdowns came in place that would-be sellers became less interested in putting their home on the market, at least as much as any waning in buyers' interest. Consequently, home prices in most markets have either been stable or risen in 2020, even though there is less volume sold.

In our area, prices have continued to rise, and homes are continuing to go under contract within days, sometimes hours, of being listed.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: How Will Corona Virus affect the Real Estate Market ?

Post by willthrill81 » Tue May 26, 2020 2:41 pm

mrx wrote:
Tue May 26, 2020 2:37 pm
With tech companies announcing forever work-from-home policies and expanding in LCOL. I am considering selling my home in a HCOL and rent for a year or two as I am suspecting tech centered locations will be hit the hardest (think Silicon Valley). My friends who rents already have plans to move out of the bay area at least for this year to save 50% of their rent!

My wife doesn't like the idea since life is already disrupted enough so I am thinking this will be a missing opportunity for us. I just hope the price drop is not big enough to make me regret this.

Do you think this is over reacting?
Does your job (you don't mention your spouse's) still require your physical presence? If not, will it remain that way permanently?
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

squirm
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by squirm » Tue May 26, 2020 2:44 pm

Summer/fall probably not a big deal as virus spread is minimal. Watch out for winter though. maybe a vaccine by then and will make this all go away.

rich126
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by rich126 » Tue May 26, 2020 2:46 pm

I'd agree with the lack of inventory (for obvious reasons). Values around me in Scottsdale haven't dropped, whether that changes down the road will depend on a lot of factors.

I'm one of those people that may consider selling if the virus wasn't here but have zero interest in moving right now. Especially since that would likely require a job change and a move back east which has been hit harder by the virus than my current location.

Honestly no one knows for sure. If a bunch of people are out of jobs it is never a good thing for the economy or housing.There are many families that consist of two earners and while one may make less than the other, it all helps to afford a home. For example, someone may have a technical job that pays well while the spouse/partner is a FA, bartender, etc. and losing that second income makes things much tougher.

mrx
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by mrx » Tue May 26, 2020 2:54 pm

willthrill81 wrote:
Tue May 26, 2020 2:41 pm
mrx wrote:
Tue May 26, 2020 2:37 pm
With tech companies announcing forever work-from-home policies and expanding in LCOL. I am considering selling my home in a HCOL and rent for a year or two as I am suspecting tech centered locations will be hit the hardest (think Silicon Valley). My friends who rents already have plans to move out of the bay area at least for this year to save 50% of their rent!

My wife doesn't like the idea since life is already disrupted enough so I am thinking this will be a missing opportunity for us. I just hope the price drop is not big enough to make me regret this.

Do you think this is over reacting?
Does your job (you don't mention your spouse's) still require your physical presence? If not, will it remain that way permanently?
I work in tech and wife doesn't work. Technically there is still a chance I might *have* to go to work by end of year, although it seems like this might change in the near term. Unfortunately it's a no-one-knows-the-future kind of situation.

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Re: How Will Corona Virus affect the Real Estate Market ?

Post by fareastwarriors » Tue May 26, 2020 3:01 pm

mrx wrote:
Tue May 26, 2020 2:37 pm
With tech companies announcing forever work-from-home policies and expanding in LCOL. I am considering selling my home in a HCOL and rent for a year or two as I am suspecting tech centered locations will be hit the hardest (think Silicon Valley). My friends who rents already have plans to move out of the bay area at least for this year to save 50% of their rent!

My wife doesn't like the idea since life is already disrupted enough so I am thinking this will be a missing opportunity for us. I just hope the price drop is not big enough to make me regret this.

Do you think this is over reacting?
Many people would love to get a Bay Area home for 20-30% cheaper.

mtmingus
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by mtmingus » Tue May 26, 2020 3:05 pm

How much longer of these unprofitable airbnb investors could hold for their properties?

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Sally
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by Sally » Tue May 26, 2020 3:06 pm

Location may make a big difference.

I had a house in Sussex County (lower, slower) Delaware, in a small town within a couple of miles of the beach. I put it on the market a few weeks ago and had multiple offers within 3 days (No, it was not priced too low--in fact, it was on the high side, but still reasonable to ensure it would appraise). Accepted an offer and a backup offer. It has already been been inspected and appraised and am closing June 4th.

According to the realtor, the market there is really hot as folks from the DC area, NYC, and even NJ want to relocate or have 2nd homes to escape their environments to areas that aren't as populated (teleworking and being so near the beach is a big plus for that area not at the beach but within short drive (15-20 minutes in traffic) thereto.

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Re: How Will Corona Virus affect the Real Estate Market ?

Post by willthrill81 » Tue May 26, 2020 3:12 pm

mrx wrote:
Tue May 26, 2020 2:54 pm
willthrill81 wrote:
Tue May 26, 2020 2:41 pm
mrx wrote:
Tue May 26, 2020 2:37 pm
With tech companies announcing forever work-from-home policies and expanding in LCOL. I am considering selling my home in a HCOL and rent for a year or two as I am suspecting tech centered locations will be hit the hardest (think Silicon Valley). My friends who rents already have plans to move out of the bay area at least for this year to save 50% of their rent!

My wife doesn't like the idea since life is already disrupted enough so I am thinking this will be a missing opportunity for us. I just hope the price drop is not big enough to make me regret this.

Do you think this is over reacting?
Does your job (you don't mention your spouse's) still require your physical presence? If not, will it remain that way permanently?
I work in tech and wife doesn't work. Technically there is still a chance I might *have* to go to work by end of year, although it seems like this might change in the near term. Unfortunately it's a no-one-knows-the-future kind of situation.
Between that and your wife's reticence about moving, I'd stay put for now. If you learn that your job won't require your physical presence going forward, then there's almost certainly strong financial justification for moving.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: How Will Corona Virus affect the Real Estate Market ?

Post by smitcat » Tue May 26, 2020 3:39 pm

Sandtrap wrote:
Fri Mar 13, 2020 9:58 pm
Every day you wait to list your home for sale, is 1 day too late farther down the line.

Ignore the Corona Virus in this matter.

j :happy
I would normally agree with you but it is impossible here now due to the Covid19.

Kennedy
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by Kennedy » Tue May 26, 2020 4:37 pm

I want to know how people, in general, are able to get a mortgage. Sure, there are those whose jobs have not been affected by covid. However, with unemployment at 20%, that sure knocks out a lot of people from qualifying. Is the majority of these 20% in low-income jobs that tend to rent and not buy?

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Re: How Will Corona Virus affect the Real Estate Market ?

Post by stoptothink » Tue May 26, 2020 4:46 pm

Kennedy wrote:
Tue May 26, 2020 4:37 pm
I want to know how people, in general, are able to get a mortgage. Sure, there are those whose jobs have not been affected by covid. However, with unemployment at 20%, that sure knocks out a lot of people from qualifying. Is the majority of these 20% in low-income jobs that tend to rent and not buy?
Without any data to support my position, IMO it would be safe to assume that the majority of the struggling industries have a lot of low-skilled workers; restaurants, hotels, movie theaters, etc. Anecdotally, thinking about the people I know who have lost their jobs recently, almost without exception they are individuals in low-pay/low-skill jobs who are in no position to consider buying a home.

Kennedy
Posts: 529
Joined: Mon Nov 10, 2014 2:47 pm

Re: How Will Corona Virus affect the Real Estate Market ?

Post by Kennedy » Tue May 26, 2020 4:55 pm

stoptothink wrote:
Tue May 26, 2020 4:46 pm
Kennedy wrote:
Tue May 26, 2020 4:37 pm
I want to know how people, in general, are able to get a mortgage. Sure, there are those whose jobs have not been affected by covid. However, with unemployment at 20%, that sure knocks out a lot of people from qualifying. Is the majority of these 20% in low-income jobs that tend to rent and not buy?
Without any data to support my position, IMO it would be safe to assume that the majority of the struggling industries have a lot of low-skilled workers; restaurants, hotels, movie theaters, etc. Anecdotally, thinking about the people I know who have lost their jobs recently, almost without exception they are individuals in low-pay/low-skill jobs who are in no position to consider buying a home.
Yes. Agree. However, I'm curious how this is going to shake out in a couple months when (?if) the CARES act and PPP (money trickling down from small business owners) goes away. Are mass layoffs for people not considered low-skilled right on the horizon?

I have a friend who works in middle management for one of the primary national, non-profits who told me a majority of their staff is getting laid off next month.

Dandy
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Joined: Sun Apr 25, 2010 7:42 pm

Re: How Will Corona Virus affect the Real Estate Market ?

Post by Dandy » Tue May 26, 2020 5:08 pm

With employment such a problem you would think fewer people could afford to buy a house/condo. Also banks might also be somewhat hesitant to lend even if you are employed. But, many banks thrive on granting mortgages. Renters might like to get out of apartments with a high concentration of people (social distancing) and those with children would like to have a private back yard for kids to play in - especially when parks and summer camps are questionable. How will nice centers of towns be affected if so many small businesses go under? And the corresponding loss of tax revenue.

I know if I were young and living in an apartment I'd want to have a house if I had children. But, I'd worry about job security so I probably would be waiting. Time will tell if and how the RE market will be affected.

go_mets
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Joined: Wed Oct 21, 2015 11:49 am

Re: How Will Corona Virus affect the Real Estate Market ?

Post by go_mets » Tue May 26, 2020 5:35 pm

Interestingly enough a single-family house in my neighborhood sold in 10 days according to Realtor.com
I was shocked!

.

protagonist
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Re: How Will Corona Virus affect the Real Estate Market ?

Post by protagonist » Tue May 26, 2020 5:44 pm

Here in Northampton, MA (a MCOL college town between Boston and NYC, pop. ~28K), I was surprised to learn from a local realtor friend that the RE market is booming, largely due to New Yorkers sitting on million+ dollar little apartments who decided that COVID was the last straw and they want to move out.

As for the national effect, only time will tell....mostly just guessing now, and everybody thinks they are an expert.

supalong52
Posts: 258
Joined: Tue Feb 09, 2010 1:51 pm

Re: How Will Corona Virus affect the Real Estate Market ?

Post by supalong52 » Tue May 26, 2020 5:50 pm

Here in SoCal, houses are flying. Two houses in our neighborhood both went under contract in 3 days. Inventory is low and folks who are not in a home are really eager to nest due to Covid.

stoptothink
Posts: 7870
Joined: Fri Dec 31, 2010 9:53 am

Re: How Will Corona Virus affect the Real Estate Market ?

Post by stoptothink » Tue May 26, 2020 5:55 pm

Similar here in Utah. I had two neighbors put their houses up for sale since March, both had multiple offers in a matter of days.

randybobandy
Posts: 71
Joined: Fri Oct 05, 2018 10:51 am

Re: How Will Corona Virus affect the Real Estate Market ?

Post by randybobandy » Tue May 26, 2020 8:09 pm

Listed a house in a popular Detroit suburb in the middle of this month. 4 over asking offers by the end of the 2nd day. Should be all completed in about 10 days.

--Randy Bo Bandy

Jeff P
Posts: 164
Joined: Tue Aug 11, 2015 10:07 am

Re: How Will Corona Virus affect the Real Estate Market ?

Post by Jeff P » Wed May 27, 2020 7:17 pm

I know 6 couples that have bought a house since all this started. 4 were renting prior.

Tons of pending houses right now. Though I have seen a fair amount of pending listings put back on the market that went pending in March.

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