To say that this has been an unusual year for real estate would be quite an understatement. In February and March of this year, home sales had slowed to the lowest level in many years. As agents, we were very concerned for our clients who needed to sell their homes. Would our sellers have to reduce their prices in order to sell their home during the Covid-19 pandemic?
The bottom line: do not count on a wave of foreclosures or short sales due to the economic fallout of the COVID-19 recession. While there may be a bit more distressed in 2021, a slight rise, it will pale in comparison to the Great Recession. Nobody should expect any type of a deal anytime soon, especially with mortgage rates that dipped below 3%, reaching yet another record low.
The market is currently sizzling hot with an overall Expected Market Time (the time between the signed listing contract to opening escrow) of 38 days, the hottest market since 2013. Yet, many sellers are not finding success. Incredibly, 33% of all currently active listings have been exposed to the market for more than two months.
