Is It Too Risky To Sell When Sheltering In Place Ends?
Is it too risky to sell when sheltering in place ends? We do not think so. But we also don't think it's ever good to try and time a market. You should sell because you need to, not because of a trend.
In any event, I have not met one person who even likes to move. Having said that, we do believe there is significant pepped up demand from buyers that have been sidelined and are ready and need to purchase. That does not mean there will not be a small percentage of buyers that are looking to low ball and try to steal your home. As always, this attempt will be made. But it won't be the majority, and it won't drive the market.
We believe that pricing will hold. It is important to keep in mind that this crisis, although devastating in so many ways, it is not tied to the housing or mortgage industry. It is being caused by an outside event. An unbelievable global health crisis. This outlook is consistent with all time frames that have followed recent economic recessions, not tied to the real estate industry. Similar to the challenges we faced with the dot com crash in early 2000, was immediately followed by 9/11 and consumer discretionary services, such as airlines, leisure, hospitality, restaurants, and entertainment, were under severe pressure.
Similarly today, people are being asked to stay at home for extended periods of time, businesses have been forced to close, and unemployment has skyrocketed. Hence the federal reserve lowered the federal refunds rate and an unprecedented government stimulus package was passed in order to stabilize the economy. We believe that once the general public is permitted to leave their homes, return to work, businesses will open, employees will be rehired, and the economy will start to recover, slowly and cautiously.
Bottom line, I do not know what the new normal everyone is talking about will be. But I do believe that if you need to sell your home, there will be qualified buyers ready, willing, and able to transact. There may be less buyers, but they will be real. And in my opinion, that creates an efficiency and a better market. Good luck to you. Please be well, and stay safe.