The Coronavirus and the Real Estate Market

I am 63 years young! In all those many years I have never seen a reaction to anything like this on any situation in my life. Coronavirus it is here, and we must deal with it and the repercussions.

I want to be positive about the situation we have found ourselves in, but I want to be realistic too. I want to live my life like I always do, but I do not want to be stupid either and ignore what is going on in the world. I am accepting that all kinds of events are being canceled and social interaction is going to be limited. I understand how the stock market reacted to this medical crisis.

But what about my business? What is going to happen to the real estate market?

Those of us that have been around awhile have lived through many different situations from the fall of thee savings and loans to the last crash in 2008 and everything in between. This is just another bump in the road, and we will make it.

First of all, we do not want to benefit from other people’s misfortunes, but as an investor, we are here to assist people that might need to dispose of property for many different reasons. I look for the silver lining not doom and gloom.

I see elderly people thinking again about moving into a retirement home, move in with family or downsize into a more manageable home. This is where an investor or real estate agent can help them by purchasing their current property. If you can, offer your services to find them a new place to live. Maybe you have a rehab house you could tailor to them.

Many investors have invested in short term rentals. With travel slowing down, investors may find not as many bookings. Now may be the time to turn those properties into longer term rentals, as there still is a rental shortage in Texas.

People that need to move for job relocation or to be closer to family might be more motivated to sell now and might negotiate in an investors favor. They might not want people coming to their house for showings and will just want to sell.

Now for the big question of price of real estate. Just like in other situations that we have encountered; I feel we will see a dip in prices. I do not see prices going up like we have been seeing. I think that the market will slow down and prices will drop. People will think twice about moving unless necessary. I do not foresee a crash like in 2008, but I see prices stabilizing or a slight decrease. (3-5%)

The volume of real estate transactions is going to slow down in the next few months. The big selling season is going to affected.

Please do not panic. The good news is that everyone needs a place to live. We provide those places.

Take this time to build your business. Ask others how you can help them during this time of uncertainty. Can you provide some goodwill to others by stopping by the store for someone who can’t get out? Can you help with some spring yardwork? Take someone for a walk who is not getting out of the house much. Bring some books or magazines to read. Make a meal or snack food. Make some friends so think of you when they need real estate services or know someone that does.

Take some time to expand your knowledge in different areas of real estate. Take some online classes. Watch some videos. Listen to some podcast. Read some books. Do some research. This is a great opportunity to spend your time on your real estate education. And if we need social interaction, but don’t want to expose yourself, I will be looking into interactive online call meeting.

In closing, have faith in God, each other and our country. Stay healthy by eating right, taking your medicines/vitamins,  and make good choices on when and where you go. Treat others like you want to be treated and we will all make it through this.