How Did COVID Affect The Real Estate Market?

Biggest asked question for 2020, “how is COVID affecting the real estate market?” No doubt COVID threw us all for a loop!  I don’t think any of us knew when they “extended” spring break and made masks mandatory that we’d still be masked up entering 2021.  The DFW real estate market initially reacted the same way, we were poised to shift from a sellers market to a buyers market, but at first it stayed stable.  Many buyers and sellers were nervous about the effects it would have on their ability to either buy or sell.  We also saw many real estate agents not really knowing how to move forward as well.  Many of us watched the market and initially there were many doom and gloom interpretations.  We saw a light and decided to turn lemon into lemonade and immediately got to work on plans for virtual showings for buyers and virtual listing appointments for sellers.  Then due to the interest rates dropping, suddenly the market switched and shifted right back to a sellers market. 2020 ended up being a “perfect storm” kind of year for real estate.  Buyers benefited, and still are, from historically low rates (we saw as low as 2.35%). When the rates drop like that affordability increases dramatically, we had a client with a max approval of $200k at the “pre COVID” 4.25% and when the rates initially dropped to 3.25% it gave them $25k more house for the same price, now the rates are even lower. The other bonus was that sellers that were planning to sell weren’t selling for various reasons and this caused an inventory supply that couldn’t keep up with the buyer demand, therefore launching us right back into a sellers market. What we tried to explain to our buyers who were on the fence and not enjoying having to compete with other buyer was even if you pay$10k more for a$300k house, at the rate the prices were increasing they’d likely be ahead a year later and still have a lower payment than they would have if they waited and interest rates went up as well as the prices.  I could go on for hours about the market, I love analyzing it and educating about it. What’s instore for 2021? No one knows, but we’ll be here watching it for you!

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