Home sales prices are sky rocketing…Some buyers and sellers are taking advantage of rock bottom mortgage rates and minimal inventory of homes for sale. Since July home sales have jumped as buyers are ignoring the uncertainty of the economic conditions caused by the coronavirus pandemic.
Starting mid-March and continuing until mid-June the real estate market fell flat. Sellers took their property off the real estate market and buyers did not want to visit occupied homes. Instead, many people were focused on stocking up on groceries and toilet paper. Also, coping with moving their work space to their new home office, but most of all is having all their family members at home all the time. Everything changed…cooking, schooling, worshiping, and social distancing at home. “We need a bigger house” was heard everywhere.
However, the July numbers are evidence of a housing market rebound from the stay at home orders and fear over the coronavirus. The National Association of Homebuilders reported its monthly home builder confidence was at a record high.
Real estate agents are seeing more demand although the home buying process has changed significantly due to the process of PEAD. PEAD stands for (Property Entry Advisory and Declaration).
PEAD’s purpose is to notify buyers of the risk of possible exposure and to advise them to take reasonable precautions. Therefore, to view a home for purchase the buyers must certify in writing they do not have the coronavirus nor have they been in contact with anyone within the last 14 days.
You may have noticed the lack of real estate signs on weekends as open houses are no longer appropriate. Since realtors must keep track of everyone who comes in contact with a buyer or seller and obtain this signed declaration.
But that doesn’t stop the adventurous buyer even though there are no signs that the pandemic is coming to an end and the fact unemployment in California is over 14%. Buyers are aggressively looking for their new home, real estate agents are seeing more demand to purchase a home, in fact, many sellers are receiving multiple offers and experiencing bidding wars.
That’s where it takes an experienced realtor to discern between overzealous buyers and inexperienced buyer agents. The seller’s agent must be experienced enough to determine the most qualified buyer. To represent the seller properly the agent must assess all the buyer’s offers and determine which buyer is ready, willing, and able to complete the escrow without additional negotiations. Sellers be sure to interview your listing agents carefully.
According to DQNews, Home sales rose 21.8% from June in Riverside County and San Bernardino County rose 22.3%.
With many well-paid white-collar workers working from home they are looking for larger space to conduct their business, and take care of their family. With interest rates low, buyers are able to purchase more than they could before. Whether it is more square footage or more land, buyers are seeking more from their home.
For more information about the market changes, you may contact Margie Miller, Inland Empire Real Estate Broker since 1979. Margie@MillerAssociatesRealEstate.com or 909-888-9000.
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