Real Estate Market After Covid-19
I hope you are all healthy and enjoying this first weekend in May! I’m sure many of you feel like I do lately, wondering how in the world is it Saturday already? Or is it Monday? Wasn’t it just trash day yesterday? We are all Bill Murray these days…That being said, I cannot believe that even a pandemic can’t stop this real estate market from moving right along. Has activity slowed down in the Philadelphia real estate market? Absolutely! Has activity slowed down to where you would expect it to during a global pandemic? Absolutely Not! It’s really crazy!
The market in Philadelphia was chugging away at a nice, healthy pace during Q1 2020, before the pandemic occurred. If you’re interested in all of the statistics from Q1 in Philadelphia, I will point you to Kevin Gillen’s Housing Report. See the link to his report at the bottom of this blog post. This post is more about my gut feelings followed by some market stats to support my feelings.
Our listings are selling at around 8% less than the original pre-Covid listing prices. Not that bad all things considered. We feel that these prices will rebound as long as there isn’t a massive increase in inventory post-shelter in place. We’re getting calls and emails daily from sellers wondering when is the best time to list. Although things are certainly not normal, we feel they will bounce back to somewhat normal very quickly.
Buyers are out too! Online home searches are through the roof across all major real estate sites and we get calls from new buyer clients daily. There is a real pent up demand going on and inventory is still very low. National real estate statistics show that scheduled real estate showings are rebounding, even if they are performed via virtual showings on Zoom or FaceTime. My team has personally put multiple homes under contract during the shelter in place from Virtual Tours and Zoom calls. The caveat is that we add a 24 hour right of rescission for the buyer, so they get the opportunity to physically walk the property before 100% committing. The shelter in place period is actually a very good time to be a buyer since the most motivated sellers are still listed on the market, interest rates are historically low and you can take advantage of this time to negotiate prices lower than you might otherwise be able to accomplish in a normal, non-pandemic negotiation.
In the Philadelphia market, physical showings will be permitted again starting Monday May 25th. The economy has definitely taken a hit but I know that real estate buyer demand still exists. Buyers want to buy and sellers want to sell. With the historic government stimulus, good old American grit, creativity and hard work, the economy will bounce back enough to have a great real estate market for years to come!
Reach out any time if you would like statistics on the local real estate market or if you are interested in buying or selling a home in the near future. 267.626.7613.
Click on Q1 2020 at top of the page.
STAY WELL AND ENJOY THE WEEKEND!