Monday, April 27, 2020

Home Prices Not Dropping Yet

Home Price Growth Slowing Down, but Not Dropping—at Least Not Yet



As the coronavirus pandemic drags on, it continues to take a toll on the housing market, as home price growth continues to soften and the number of new homes for sale plummets, according to the most recent realtor.com® data.
The median home list price was up just 0.3% year over year on realtor.com in the week ending April 18 in the 100 largest real estate markets. The previous week it was up 0.8%, the week before that it was 1.6%, and there was a 2.5% rise in the week prior to that.
"We're seeing prices slow down. They haven't dropped, but they have slowed down significantly," says realtor.com Senior Economist George Ratiu. "Prices are likely to decline moderately over the next months and a lot steeper later."

The national median home price held steady at $320,000, virtually unchanged for the past six weeks. While most real estate experts believe prices will remain strong, with no fire sales like around the Great Recession, this spring buying season definitely won't be as strong as in previous years.
After all, about 26 million Americans filed for unemployment in the first five weeks of this crisis.
Many buyers, about 38%, are simply waiting for the health and economic crisis to pass to purchase a home, according to a recent realtor.com survey. The survey was conducted April 15–17.
“Pricing your home the way you did two months ago is impractical," says Ratiu. "In a normal market, a lack of inventory pushes prices up. In the current market, the lack of inventory indicates sellers are not confident they can sell their homes at top dollar.”
The number of new listings on realtor.com has continued to fall. Sellers worried about having buyers inside their homes, not being able to fetch a good price, and moving during a pandemic are pulling their homes off the market. Many would-be sellers are deciding to wait until the crisis is over to put their properties up for sale.
The number of new listings dropped 42% in the week ending April 18 compared with the previous year. The prior week the number of listings fell 47%, and they were down 31% in the week before that.
"Sellers are reacting [to this crisis] by choosing not to put their homes up for sale," says Ratiu.
In another sign that COVID-19 has upended the housing market, homes are sitting on the market for six days, or 10%, longer than last year. That's the biggest increase since 2013.

article source:  https://www.realtor.com/news/trends/home-price-growth-slowing-coronavirus/

Tuesday, April 7, 2020

House Hunting Amidst COVID19

Now that the coronavirus pandemic has people across the country hunkering down at home to lower their exposure levels, even the most determined home buyer might be wondering: Is it safe to shop for a house right now?

While risk is a personal decision, the real estate industry is adapting to provide ways to go about home buying safely during the coronavirus pandemic. You can now do many things at a safe social distance, or even remotely, when it comes to buying a home that you may not have considered doing in the past.
Here are all the ways in-person checkpoints to buying a home have changed to keep you safe during the coronavirus pandemic.
FOR SALE: 20209 Creekspring Ct, Purcellville VA

Finding the right real estate agent

When it comes to buying a home, pairing up with the right agent is always key to finding your perfect property. But today, you need one who is tech-savvy and comfortable conducting meetings and business online.
 To find an agent to further help you remotely, ask candidates if they offer virtual consultations and home tours. They should also be able to help you with e-signature apps so you can send and receive documents to sign digitally through email.
"If an agent doesn’t offer these services yet, I highly recommend finding an agent who is [comfortable] working with technology," adds Wells.

 Virtual home tours

Crowded open houses with a plate of cookies for everyone to grab are a thing of the past—at least for now. Instead, you've got virtual open houses and video tours.
There are several ways to virtually tour a home. Along with photos, many listings were already starting to incorporate videos or virtual reality tours.  You'll be able to tour the home, room by room, without physically stepping onto the property.  However, these videos are filmed and edited, so you may not be able to see every nook and cranny. If you want to do a deeper dive, many agents will accommodate you.
Granted, we're not necessarily saying you should buy a house without seeing it in person, unless there's no choice in the matter. Nonetheless, it's smart to do what you can remotely to whittle down your options so you can choose what's worth an in-person visit, now or later.

Remote mortgage pre-approval

Some lenders had already made the entire mortgage process digital long before social distancing was needed. And now, many more have jumped on board out of necessity.
The first step is to interview a few loan officers over the phone or by video chat. Since mortgage interest rates are all over the map these days, it's extremely important to shop around and compare what they're offering—and make sure they're comfortable conducting all steps of the transaction online.
Ideally you want a lender that allows you to track your loan progress, view educational resources, and stay in touch, all without leaving the house.
In order to get pre-approved for a loan, the lender will need to review your income, debt, credit history, and other factors—and you'll need to submit paperwork verifying all of the above.
Luckily, most of this paperwork should be available online, such as pay stubs, tax returns, and bank statements. If you're unsure how to access them, a tech-savvy lender should be able to help. (Here's more on the paperwork needed for mortgage pre-approval, and why getting pre-approved matters.)

Remote home inspections

At a remote home inspection, inspectors take a lot more pictures than they might have in the past so clients can get a good idea of where the issues are. Once the report is completed, Sisson sets up a video call and emails clients PDFs of background information about why inspectors test what they do.

Virtual home appraisals

Home appraisals required by a lender generally include a site visit, which is not possible in some parts of the country where this is not considered an essential service. Luckily, appraisals pertain only to those getting loans, so cash buyers can skip this process entirely. But if you are getting a mortgage, fear not.  The appraiser uses comparable properties for the reports. While these methods may not be to the penny in terms of value, they are relatively accurate and allow lenders to continue operating.

Remote home closings

In-person home closings—where all parties come together to sign contracts, swap keys, and shake hands—are, for the most part, not happening right now (especially the shaking hands part). However, most closings require some face-to-face interaction, since people have to sign documents and notaries need to stamp them in person.
So while home buyers will probably have to show up on closing day, it will look far different from the past.