Santa Clarita Coronavirus real estate market impact predictions 2020
The panic has been amazing, not only amongst those whom we don't know but amongst who we know. There are a thousand reasons why this is not going to be the final stand of the human race, but you'd not think it when out amongst the masses shopping.
Fighting over parking spaces or over the last roll of Charmin, it is quite the spectacle.
This is not real estate's last stand either. We will continue to move forward and real estate won't go the way of the stock market unless we have many people start to panic sell.
The safety net happens to be the refinance market that we have been experiencing for the last few months.
It has slowed the "resale" market due to the lack of real estate inventory hitting the market for sale.
While we are in a seller's market, those "prospective sellers" are not seeing anything that makes them placing their homes on the market a warmer and fuzzier place.
A lot of people that are considering selling want to see a satisfactory amount of homes on the market that fit their needs before placing their home on the market for sale.
Some agents will tell their sellers this is not the right way to do it. That by the time they see the "right" home to buy, the time will have passed to get their home on the market, get the pre-marketing tasks completed and place their home onto the market and have an offer accepted on it.
Real Estate is a very personal decision. There are ways to do it the "right way" and other ways that will cause you issues. When you are ready to reach out to me.
Connor Macivor (00:00):
March 16th, 2020 good to everybody. I am Connor MacIvor, Santa Clarita, home experts.com. Today's our typical radio broadcast. We are on Monday of the week grown a virus covid19 is alive and well apparently and moving through the United States. Apparently we have enough test kits now so people that have questioned whether or not they have the virus or some kind of tracking or whatever it is that the government and the powers that be are going to do, they're going to get that information out there and start checking people out and then we'll get the real numbers and find out how big of a calamity this thing is going to become. If you are a shopper, you've probably seen as, I have a lot of panic at the stores, the Walmarts of the grocery stores. It's been rather interesting. So I get a lot of questions because I am the consummate real estate professional of course.
Connor Macivor (00:58):
But I do get a lot of questions about what impact this is going to have on the market. And I'll tell you a few things that I covered with a client this morning. So as you saw on TV, interest rates are even lower than they were this last week. That is the case. When the stock market starts to get nailed in a bad way, it starts to have issues itself, then the bond market gets stronger because people pull out and want to put their money in. Treasury bonds, our savings, Mons, all sorts of fancy stuff. So by making that market stronger, that then lowers the interest rates because of the higher confidence and the in those bonds. Well, what we've seen is an additional reduction by the powers that be in the white house even further. So one of the things that I would tell you if you have refinanced a while back, I would give your lender a call again and see if it's worth it.
Connor Macivor (01:56):
Now the question, see if it's worth it. It's really important to ask and you don't want to see it on paper for yourself because if you just did a refinance and you're only going to save a quarter-point, it might not be worth it because you're going to be paying fees again, but you need to check it out over the long term as long as you're going to be in the property and so on. So pencil all those numbers out. How is this going to affect real estate as far as this quarter? Quarter one closes out the end of March. Quarter one's going to be a zero, quarter two potentially is going to be a zero. We're going to have to see what's going to go on and what I mean zero up, zero down. It's going to stay pretty much static. We'll have to see what happens. Quarter three if in quarter two a cure is found and we have very little spread in The United States, which is definitely, definitely could be the case.
Connor Macivor (02:47):
People are going to be overflowing in their houses with toilet paper, but we might actually be able to put a hold on this where we don't have this epidemic type proportion that we've seen in Rome and China and so on and so forth. If it holds, then we'll probably see a lot more movement with regard to the real estate channels of people starting to buy hand over fist at that particular time. Understanding, of course, when the stock market goes down, typically real estate starts to be something that people are investing in. That's gold, that's silver, real estate, tangible assets, those sorts of things. So as far as the overall impact on the real estate market, I believe that's going to be nominal. Even if we don't do get thrown into a recession. And here are two reasons why. First off, typically people that refinance, they hold back on wanting to sell their houses.
Connor Macivor (03:42):
Usually, they're going to sit and squat. Number two we're going to have, and we've seen this very, very low housing inventory. Therefore, because we don't have a lot on the market for sale, unless there's some big change to the real estate market where people start to go put their houses on the market hand over fist in, in a panic cell type situation, we're not going to have much movement at all. There isn't the inventory to sell. Buyers are still looking, there are still plenty of buyers out there with these low interest rates, but again, the inventory just isn't there. And a lot of people that go look at the new housing you might think, well isn't that an easy solution? Well, not necessarily because new housing isn't really freeway friendly because of where it's located. And also a lot of the buyers that go into new housing, they're not impressed.
Connor Macivor (04:31):
They learn soon enough, especially if they have me by their side that they're buying a blank white box pretty much. They're not buying the model home that has all the upgrades, all the fancy stuff, all of that. So that's kind of a turnoff to some people. And then they want to find out what the cost to make the house, just like the one in the model and you had to talk and in some cases, two, three, $400,000 more to have all those upgrades done when you go to the upgrade center. I've caught her MacGyver, nominal influence on real estate. I believe everything's going to be nice and easy even in a recession, recession situation. I'm Connor MacGyver, Santa Clara to home experts.com please visit our blog. A cute, I heard a gentleman speaking about a website to go to to get more information about the coronavirus. Here's the term backslash is haven't been used for quite a while in domain name entry, Santa Clarita, home experts.com forward slash blog so where you could read more information about the market, find out what's going on. That's where radio stations posted. I'm going to, I'm going to go to the gym. I'm excited, so I'm going to go get my workout did and we will talk later. I've caught her mic. I ever thank you so much for listening on this great. Monday, the 16th of March, 2020 we'll talk to you soon. Connor MacGyver over and out.