People have been floored when I tell them that I’ve been busy helping people make offers on properties, even with the stay-at-home orders. We haven’t been impacted by any severe price reductions due to the pandemic, either. People assumed that the coronavirus halted everything, but that’s not the case when it comes to real estate.
There are three reasons why I believe that our housing market won’t be seriously affected by COVID-19 this year:
1. There’s an imbalance between buyers and listings. Way more buyers are looking for properties than there are quality listings. The coronavirus has exacerbated this problem; there are fewer listings in the marketplace due to COVID-19, but there is much higher demand at the moment because of a minor shift of individuals looking to leave New York and move to Connecticut.
2. There’s a delay in foreclosures due to courthouse closings. The C.A.R.E.S. Act has afforded any consumer impacted by the COVID-19 crisis the ability to put their mortgage into forbearance for up to 12 months. Not to mention that Connecticut is a judicial state—the foreclosure process typically takes anywhere from 12 to 24 months to close, with the courts urging the bank and the borrower to work out some sort of modification plan before moving forward with the foreclosure process. It will probably be a long time before we see a shift and see higher levels of depressed inventory hit the market.
3. In my view, the opposite of what people believe will happen tends to take place. The pendulum always swings from extreme pessimism to extreme optimism; people now seem to think that the housing market is going to do so badly, but in reality, the opposite will likely happen, and we’ll see our housing market do well over the next few years.
If you have any questions regarding housing, don’t hesitate to reach out to me. I’d love to hear from you.