COVID-19 and the housing market

What buyers and sellers need to know amid COVID-19

DISTANCING THEMSELVES ANDSTAYING AT HOME..

MANYBUSINESSES WORRIED THE RESULTSWOULDBE DEVASTATING.BUT AS 23ABC'S VERONICA MORLEYSHOWS US, THAT'S NOTTHE CASE FOR EVERYONE..IN FACT -- ONE LOCAL REALTORSAYS HE'S BUSIER THAN EVER..IF YOU'RE LOOKING TO SELL ORRENT YOUR HOME RIGHT NOW - THECORONAVIRUS MAY HAVE CREATED APERFECT MARKET FOR YOU..BUT IF YOU'RE LOOKING TO BUY ORRENT A PLACE - THEN PICKINGSMIGHT BE SLIM.I SPOKE WITH A LOCAL REALTOR TOSEE HOW COVID-19 HASIMPACTED THE HOUSING MARKET ANDWHAT BUYERS ANDSELLERS NEED TO KNOW RIGHT NOW..HE'S BEEN IN THE GAME FOR NEARLY15 YEARS AND HE'S SEEN THEUPS AND DOWNS OF REAL ESTATE.."I DON'T THINK IT'S GOING TO BE2007AGAIN BUT DEFINITELY THERE ISGOING TO BE AN IMPACT."BENNY VILLEREAL STARTED IN REALESTATE BACK IN 2005 AND GOT HISREAL ESTATE LICENSE IN 2006,JUST BEFORE THE ECONOMYENTERED A RECESSION, SO HE'S NOSTRANGER TO HARD TIMES."THATS WHEN THE ECONOMY WAS YOUKNOW AT ITS PEAK - AND THEN ITTANKED, IT TANKED RIGHT AFTERTHAT.

WE HAD AREALLY BIG RECESSION IN 2007 ANDPRICING DROPPEDDRAMATICALLY."HE SAID WHEN THE CORONAVIRUSFIRST HIT, HE ANDOTHERS IN THE BUSINESS WEREWORRIED ABOUT LOSING BUSINESS,BUT INSTEAD.COVID- 19 HAS MADETHIS THE PERFECTMARKET TO SELL.."WHEN IT FIRST HAPPENED RATESJUMPED UP TO ABOUT 4 AND A HALF,5 PERCENT AND SOME OF THESE BIGLENDERS WEREN'T EVEN BUYING ANYKIND OF FHA THEY WERE SCARED TOTOUCH ANY OF THAT KIND OF STUFF,SO INTEREST RATES WENT UP ANDTHEN AFTER AWHILE THE FEDS DROPPED DOWN THERATES AND IT JUST CREATED A LOTOFTRAFFIC.

SO MUCH TRAFFIC TOWHERE THESE LAST TWO MONTHS HAVEBEENSUPER SUPER BUSY - LIKE A TOTALOF 13-14 HOUSES IN CONTRACT.""IT'S KIND OF WEIRD BECAUSE YOUTALK TOOTHER TYPES OF BUSINESSES OUTTHERE AND THEY'RE VERY SLOW ANDIKNOW THEY'RE SUFFERING INDIFFERENT AREAS, SO I FEELBLESSED TO BEIN THIS MARKET RIGHT NOW BUT WESTILL DON'T KNOW, WE HAVEN'T THEEND OFIT."BENNY SAYS PRIOR TO COVID, HENORMALLY SAW LENDINGINTEREST RATES OF ABOUT 3 POINT5 TO 3 POINT 8 PERCENT.BUTNOW HE'S SEEING RATES AS LOW AS2 POINT 8.

AND WITH INVENTORYRUNNING LOW, HE'S SEEING BUYERSOFFER ABOVE-ASKINGPRICE SO THEY CAN ET A HOME."SINCE THEN, NOW YOU'RE STARTINGTOSEE AN INFLUX OF A LOT OFCLIENTS FOR EVERY HOME CREATINGA DEMANDBECAUSE RATES ARE LOW AND NOW IDON'T SEE ANY OF THOSE PROBLEMSWITH APPRAISALS AND I'M ACTUALLYSTARTING TO SEE APPRAISALS GOINGUP EVENHIGHER..YOU WALK INTO THAT HOUSEAND YOU'RE LITERALLY WAITING INLINE FORALL THESE OTHER PEOPLE TO SEEAND SO WHEN YOU GET THERE YOUKNOWTHERE'S A DEMAND"AND BECAUSE OF THAT DEMAND, IFYOU'RE IN THE MARKET FOR A PLACETO STAY, YOU MIGHT NOT FIND ITRIGHT NOW.."YOU KNOW IN THE SAD PART ABOUTRIGHT NOW TOO IS THE VACANCYTHERE IS HARDLY ANY VACANCIESOUTTHERE FOR RENTALS AND IT'S VERYHARD TO FIND AROUND A RENTAL ANDI HAVE ALOT OF PEOPLE ARE ASKING ABOUTRENTALS AND THERE'S ENOUGH ANDREALLYOUT THERE."ACCORDING TO A REPORT FROMREALTOR.COM , THE NUMBER OFNEWLY LISTED PROPERTIES IN THETHIRD AND FOURTH WEEK OFMARCH FELL BY 13 PERCENT AND 34PERCENT, RESPECTIVELY.

INBENNY'S EXPERIENCE, KERN COUNTYNORMALLY SEESANYWHERE BETWEEN 12 TO14-HUNDRED LISTING ON THEMARKET."RIGHT NOW I THINK AS OF THISMORNINGWE'RE AT 745 HOMES, SO THEREISN'T A LOT OF INVENTORY OUTTHERE."AND EVEN THOUGH IT MIGHT SEEMCOUNTER-INTUITIVE FOR AREALTOR TO DISCOURAGE PEOPLEFROM MAKING AN OFFER,BENNY SAYS IF HE THINKS IT'S ABAD IDEA HE'S NOT AFRAID TO TELLCLIENTS TO HOLD OFF."PEOPLE FALLING BEHIND ONMORTGAGES - THERE ARE PLANS TOHELP.HOWEVER WHEN YOU FALLBEHIND ITS HARD TO COME BACKFROM IT"NOW FOR THOSE IN THE REAL ESTATEBUSINESS WHO MIGHT BESTRUGGLING TO FIND CLIENTS -BENNY SAYS THE BEST WAY TO BUILDYOUR BUSINESS IS TO CONTINUE TOPUT YOURSELF OUTTHERE - LET PEOPLE KNOW WHAT YOUDO, STAY IN TOUCHWITH FORMER CLIENTS, AND GOHEAVY ON SOCIAL MEDIA.THERE'S STILL MUCH MORE TO COMEIN OUR NEXT HALF-HOUR.