January 20, 2021
By Patti Gregory
The obvious answer is COVID and having people inside your home.
I can tell you that we have successfully sold homes throughout this time and kept our clients and agents healthy and safe.
With occupied homes, I have one of my team agents at the door making sure that previewers abide by the rules including booties, gloves & masks. We ensure that only the agent touches anything inside your home (gloves with hand sanitizer). When showings are done, the property is completely wiped down and sprayed with Lysol.
One extra thing we did at our last occupied home was to take previewers temperature prior to allowing them inside. We will do whatever makes the sellers feel comfortable. The showings are also done in blocks of time that work for you.
We have similar precautions in vacant homes with showings still by appointment only, cleaning, masks, etc. Same protocol.
The California Association of Realtors has a special COVID document that buyers and agents must sign prior to entry to protect everyone.
What about 2021? Where is the market going?
I’ve been calling this a ‘COVID bubble’ because it has caused fewer sellers to list and squeezed our housing inventory. That coupled with the lowest interest rates in history we have a huge buyer pool.
People are motivated now by so many different factors. Some can buy for the same monthly amount they are paying in rent. Others have kids with ‘at home’ schooling and they are working from home and they simply need more space. Maybe it’s time to move out of condo for some yard space. Others are moving out of homes that used to be close to work and heading to the suburbs. Then there are places like Laguna, that are tougher to in and out of and now that doesn’t really matter. Some are moving out to the Inland Empire and won’t have to worry about the 91 crawl. So, so many factors at play.
Here’s what some of the experts are saying about 2021
Chapman College 5% increase
Jeff Tucker, Senior Economists with Zillow predicts 7%
California Assoc of Realtor predicts a whopping 10%
EVERYONE agrees that we will see an increase in value and most expect a selling year that will surpass 2006.
It’s all so interesting to me, I could talk Real Estate all day! I see an increase in 5-7%, 2020 saw a 7% gain.
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Should I Wait For Housing To Crash Further Before I Buy A House? 3 Reasons The End of 2022 Could Be The Very Best Time To Jump In
Prices falling in expensive cities
In two-thirds of major regional housing markets — 98 out of 148 — prices continue to drop, especially in more expensive locations.
We may see expensive markets fall further, which if that happens sooner than later, would make it an excellent time to buy into an expensive market. This wouldn’t have registered as a possibility even a few months back.
It’s difficult to predict if this will happen. And if so, whether falling prices become offset by the federal interest rate hikes practically certain to arrive in the coming months.
The only way to know for sure is to wait until the latest rate hike sets in.
Meanwhile, keep in mind that — as with any investment — it’s best time to buy is usually when prices are low.
With mortgage rates dropping and fee changes in the pipeline, now may be the time to buy that home Do you like this Article ? Sign up HERE for your FREE M&M Account to receive more Real Estate related information and news and THIS article. M&M Membership...
The days of waiving contingencies such as appraisals and forgoing inspections are fading into the rearview mirror. Still, contract activity remains slightly competitive depending on your location.
At least 24% of buyers waived the inspection contingency in December 2022, according to the National Association of Realtors confidence survey, up from 16% a month prior and 19% one year ago. An additional 24% of buyers waived an appraisal contingency in December, up slightly from 16% in November and 21% a year ago.
Home inspection contingencies are particularly important because it can let you know if there’s a deal-breaking issue with the property before a purchase occurs. It can also help you negotiate repairs with the seller, which is becoming increasingly common in today’s market.
“If buyers have this short window to buy where they can get incentives to purchase, [they] would rather buy where they have an opportunity to really think about it, get an inspection, a financing contingency and not feel rushed,” Jeff Reynolds, broker at Compass and founder of UrbanCondoSpaces.com, told Yahoo Finance.