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Hi, welcome to April 2020! Today is April fool’s and, with the Tiger King documentary bringing the country together, what further foolishness is needed?

I’ve been asked several times in the last few days “what is going on with the housing market?” The short answer is that everything still looks fundamentally solid and stalled for a few months! In the Savannah area, a stable first quarter was leading us to a more than respectable 2nd quarter. And, then just like that, everything was different. Everyone was on the hunt for toilet paper, moving college students back home, saving the world by watching Netflix and working/schooling from home. For those that live on the coast, this pandemic feels like a very long hurricane affecting the world.

Looking at a snapshot of real estate transaction in Chatham county month over month for February and March in years 2019 and 2020 gives us a mixed bag of information. Overall trends for months of inventory, new listings by unit and sales by unit seemed relatively stable and maybe even inching upward which was good news.

For clarity, when it comes to volume of units listed and sold, 2018 was the high water mark. With inventory staying about level, guess what did not remain level? The median sales price for the first quarter is up almost $25,000 over last year’s first quarter.

If those numbers represent what was, then what will be? As you know, the real estate industry is being affected by the current pandemic. I think the units of houses sold for April and May 2020 should be sharply lower than usual because there are fewer homes and buyers on the market. What does this mean for you if you were intending to buy or sell a home in 2020? For now, most economists are predicting a sharp return for the economy which will hopefully also bring a sharp return for the housing market.

Sellers should use this time to put your home into the best position possible. You know the drill: clean, scrub, correct all those deferred maintenance projects, etc. When our lives return to ‘normal’, there will be a short window when the inventory will be limited. The sellers that have their homes ready to go or already on the market prior to this time will have a great advantage over those that are waiting to see.

Buyers should be working with a lender to get themselves ready to purchase. Those buyers who are financially ready to move on houses will also have an advantage because the number of not-so-serious buyers will be limited creating less competition for your home shopping.

What about my investors? I know y’all have been waiting for a fire sale. Short of another surprise from the universe, I’m afraid this won’t be the year either. Excluding the Great Recession, annual home value appreciation across all states since 1997 averaged 4.6% during times of economic growth and 4% during recessions. Plus, owners currently have more equity in their homes than they had 12 years ago. If you are interested in purchasing investment property, now is always a great time to shop – not because properties are a steal but because you have less competition for the properties that are currently listed. There are always good deals to be had in every market and the fun is in finding them!

The Daniels Team is actively working to help our sellers and buyers be prepared for whatever comes our way. The good news is that most of what we need to do to help you buy or sell a home can be done without meeting face to face. While assisting our clients now, these changes will make our team better and more efficient in the future. Instead of a face-to-face initial meeting, the Daniels Team is taking a two pronged approach. First, you will receive a buyer or seller presentation to watch. Then we will hold a zoom appointment to answer any questions and to get a better idea of your needs, wants and challenges. Thanks to technology, our paperwork is already completed virtually. Our various vendors (inspectors, contractors, lenders, attorneys, etc) are also set up to work virtually or with very limited personal interaction. For the properties that are still available to be shown, we are following the prescribed guidelines – no handshakes or hugs (this is so hard for me), maintaining minimum 6’ of space and limiting #participants to decision makers only.

Contact us today to schedule a zoom appointment! Let the Daniels Team provide the information and expertise needed to assist you and your family.