Over the last month I have been asked numerous times about the Covid-19 Pandemic and how it has affected the market here in the Triangle. Since the second week of March, we have faced a fluid situation with things changing on a daily basis. When asked how the pandemic has changed the market, I reply by saying, it depends on which price point you are looking in. My answer is as follows:
If you are buying or selling at the price point of 399k and under, the market really has not changed. Of course this is location dependent and still pricing your home correctly. We are still continuing to see multiple offers in this price range. This is due to the lack of supply in our market. Also, the buyers looking in this price point typically do not have a home to sell, nor are they worried about retirement, and are first time buyers. The buyers are renting and don’t have any contingencies to move forward.
Once you get above 400k and are looking to sell in the $400-$600k price point, we have seen a noticeable difference or slow down in the market due to Covid-19. We have seen many buyers take a step back in this price range wanting to see what will happen during and after the pandemic. We have sellers having everything ready to go in regards to putting their home on the market, but they want to wait to see what is in the future for the market after the pandemic. Also, we have found sellers not comfortable having buyers come into their home. When buyers purchase at this price point, most have to or prefer to sell to buy, so it becomes a domino effect for the purchase to take place. Buyers in this price point statistically have children between 6-12 years old and it is tough moving right now with schools being out, and parents needing to home school.
Once you get above 600k and up towards a million, we have actually seen an uptick in showings activity for this price point. I believe it’s due to buyers that may not need to sell to buy and or looking for a good deal. Buyers are looking for motivated sellers due to the higher supply levels in this price range.
In discussing Covid-19 and the real estate market, I think that it is too early to see exactly what is going to happen. Not knowing how long we will be under the “shelter in place” orders, will affect the timing of the market picking back up. I will say this though what we are facing in 2020 is completely opposite of what we faced in 2008 in regards to the housing market. Once the confidence returns for sellers and buyers in the market, and they have job security, the market will be overwhelmed with sellers and buyers. If you are at all thinking about buying or selling in the near future, please let me know. I would love to help you accomplish your real estate goals and answer any questions you may have.