How Has COVID-19 Affected Real Estate? Share
April 19, 2020
In this video I share the State of Real Estate update I recorded for you immediately after my virtual meeting with Ryan Gorman President, CEO of Coldwell Banker.
The most important takeaway is that right now, our home has never been more important to us than ever before. It is now our office, our gym and a school for our children.
The government created the CARES Act to help homeowners who have mortgages on their homes to get a 90 day reprieve if the homeowner has lost their job, was furloughed or can’t work because of COVID-19.
The CARES act allows the homeowner to ask their lender for forbearance on their mortgage because of the COVID-19 crisis. The homeowner’s credit will not be affected, as long as he/she was current prior to the crisis.
However, Forbearance isn’t forgiveness. You will have to make up the missed mortgage payments. Remember to talk to your lender who will have the most accurate information on the way you will be making up the missed payments.
One of the biggest questions is “how is the real estate market right now”?
Before COVID-19 our real estate market was strong. In fact, Coldwell Banker across the country had the best February in 2020 in more than a decade.
Since the health crisis, Gorman stated he “hasn’t seen huge price reduction with sellers”. But any price reductions that happened, were from sellers who priced their home too aggressively in the beginning and are reducing their price. Or Sellers are taking a pause and taking their home off the market.
Gorman also stated “he hasn’t seen evidence of sellers being pressured to reduce their price.”
You need to remember this is NOT A REAL ESTATE CRISIS WHICH LEAD TO the ECONOMIC CRISIS back in 2008. It is a health crisis, caused by the coronavirus!
Right now interest rates are still incredibly low. In fact, they are the best in history hovering over 3.5%. The lowest we have seen. However, the lending market has gotten tighter and the jumbo market lenders are tightening their criteria or getting out of the market.
JP Morgan just raised their lending criteria for borrowers. FICO scores need to be 700 or higher with 20% down. But VA is still lending as before no changes there.
My best recommendation is to call your lender and if you don’t have one, I can recommend one for you to get the exact facts.
The good news is that Coldwell Banker was at the forefront of technology. Because of that, we have pivoted virtually on how to sell homes in San Diego. By doing virtual listing appointments, showings, consultation meetings and closing your home can all be done virtually, with ease.
Another take away from Gorman was to be careful of the news headlines you read. If home prices have dropped, that might be because sellers have taken their home off the market now. Or maybe their homes are in a COVID-19 hot spot and homes there are not selling, because of the COVID-19 guidelines in that area not allowing Realtors to work.
One final question that’s being asked, “Is it a good time to buy a home??
If you are in a situation that you can buy and want to buy, then the answer is YES. Don’t wait and expect prices to decline. There are no real fire sales and no real bargains. Remember investing in real estate is for the long term.
Buying or selling a home should be based on your needs. If you were thinking of making a move prior to COVID-19 and you still can, then you should. Remember to stay safe and stay healthy.
I hope this information is helpful and you want to discuss your real estate options.
Call or text me at (619) 980.2738 to set up a virtual meeting.