My perspective
on the market
I AM HERE FOR YOU
Changing times with uncertainty for now...but there are some factors which remain fixed:
Contemporaneous with COVID-19: Record low interest rates, record low unemployment, sky-high consumer confidence in real estate, low inventory, and buyers writing offers in a frenzy - We have all the underlying fundamentals of what could be the strongest Real Estate market in a generation - what is interesting is that in spite of the underlying strength of our business, we are at a time where there is considerable concern over the coronavirus, coupled with the price of oil dropping to new lows due to global overproduction, which has caused wild swings in our stock market. Reasonably so, these major news stories can cause concern for all of us. Additionally, our news channels are focusing around the clock coverage on these events leading to an almost panicked feel in our communities.
As Sotheby’s International Realty agents, we are leaders in our industry. We are also leaders in our respective communities - clients, friends, and even casual acquaintances look to us to help make sense of all that is going on, especially from the real estate perspective. We are experts in our craft and thoughtful advisors --as expected from our clients.
- It is my hope that this is a short term crisis, and will be behind us by summer.
- Crisis follows a predictive pattern. If you look to others in the past, you will notice that after the country recovered from the initial shock, fear, or anger we always enter into a period of strong growth and prosperity.
- The Government is acting quickly to stabilize the markets by injecting new capital into the economy, this does two things - it provides a floor or bottom for the economy while at the same time filling the tank with rocket fuel (imagine pulling back a rubber band to it’s limits and then letting it go!)
- There is significant activity amongst buyers. This can’t be ignored, it is a sign of strong consumer confidence.
- Mortgage rates remain at ALL-TIME lows!
- There is still low inventory giving sellers an edge and keeping prices high. Additionally, there is a strong probability that we may see new inventory hit the market which is desperately needed.
- There is a sense that if stock market volatility continues, there will be a drive to real estate as a ‘safe haven’ investment alternative.
And from a broader philosophical perspective:
- Clarity amongst consumers about the real estate market leads to confidence, and confidence leads to home purchases.
- The late Kobe Bryant once said it succinctly, “If I panic, everyone else panics.”
And lastly, my favorite philosopher once said “fear is the path to the dark side” -Yoda.
Let’s not let fear hi-jack this market!
I am here for you.
