Where do we even begin with this post? In an age of technology, human connection is a necessity. We consider it a gift to be able to disconnect from the internet, from our phones, and from the daily digital overloads so many of us experience, in order to be present with the people in our lives. And yet, given the unique and unforeseen circumstances beyond what the majority of global citizens ever expected would happen in their lifetimes… here we are: On the internet. In just a few short weeks, all of our in-person, travel to the office, drop the kids at school, morning commute, gym routine, happy hour, vacation destination lives have drastically changed in a mandatory, temporary stay-at-home order from the Governor of WA State. Inhale… Exhale…
We have been busy working from home, as so many others have been. However, rather than hosting Open Houses, touring with our clients, and having coffee shop meetings with Buyers, we have been busy navigating this unique circumstance as it relates to the real estate industry. Through email, phone calls and texts, the same question appears in our Inboxes almost daily:
What does this mean for the real estate market?
Our incoming information changes weekly, if not daily. In the spirit of transparency, it is impossible for us to make predictions as Brokers. To do so would be potentially dangerous, and we’re not in the business of sharing misinformation. That being said, Matthew Gardener, an economist for the Real Estate Industry (specifically Windermere) has been sharing valuable insight as to what we can expect in the coming months as normal life resumes.
Every Monday Windermere Chief Economist Matthew Gardner provides an update regarding the impact of COVID-19 on the US economy and housing market. This week he discusses what it really means for the economy and housing to be in a COVID-19 induced recession (hint: it's not all bad news).
Posted by Windermere Economics on Monday, March 30, 2020
Matthew has published a series of video blogs recently, on Mondays with Matthew, in which he analyzes and dissects valuable information based on the statistics and records of the economy prior to, and throughout the Covid-19 Pandemic. He speaks to the state of our housing market prior to this outbreak, noting that there weren’t red flags or concerning economic markers which would otherwise suggest any sort of immense economic downturn in real estate. Relatively speaking, our economy was very strong as we headed into Spring 2020. For that reason, Matthew suggests that the housing market is likely to remain consistent and homes will be in demand as we come out of our Quarantines.
In this particular video post this morning, he suggests that the supply for housing is not likely to rapidly increase, as has been speculated upon due to foreclosure, but will remain rather low as it has been in recent years. That number is not likely to match the demand for such housing, as new construction for homeownership is slow to produce and the number of buyers continues to increase. He goes on to state that as we come out of this and head back into business, buyer demand will continue to increase, as investing in real estate is seemingly safer than the stock market at the moment.
We are privileged to live in a state with a growing metropolitan city and a housing market that is both consistent and stable. Yes, we realize this situation has the potential to change drastically and quickly, but for the time being, we still see consistent numbers. While we currently have to operate within the confines set in place by our Government, we understand that it’s crucial to the public health and safety of our communities that we do so. For our business, that means virtual meetings, appointment-only showings and limitations to the number of clients we are able to tour with. This is not impossible by any means, and we are taking extra precautionary methods to ensure you and your families stay safe and healthy.
To our clients who want or need to buy or sell a home in the coming months, we are here to help. We offer virtual tours of homes you’re interested in as a preliminary screening of sorts. This allows us to view homes and limit the amount of time you’re away from your own. At this time, we are encouraging our clients to continue noting properties of interest, and sharing that information with us so that we can pre-screen listings in your favor. For our sellers, we are inviting you to begin the conversation with us as to what it means to list your home in the current market. We have ideas, suggestions and work-arounds on a case-by-case basis. Regardless whether you are in the market to buy or sell, we will remain open and transparent with you on all pertinent information where Covid-19 relates to real estate. Beyond that, we are “Business as unusual” and working hard to ensure positive outcomes as this unfolds in real time.
To our communities as a whole, we miss you, we care about you and we can’t wait to reconnect in the (hopefully!) near future as we come out of this safe and healthy.
Joe and Ashli