Real Estate Round-Up: Life on the Fence
Last updated 5/1/2020 at 12:29am
We have been sheltering in place for six weeks, and there appears to be two kinds of reactions. One is one of acceptance of the new “normal,” and the other is one of rejection to the imposed restrictions.
I love reading all the impassioned opinions on each side. No matter which side you are on, the fact is life is currently vastly different from what it was six weeks ago. So, in an effort to keep things positive, here are two approaches to the new “normal” for real estate.
Fallbrook's inventory of detached homes is at an all-time low. Fallbrook has approximately 154 homes for sale, which is less than a two-month’s supply. That is an incredibly good thing if you are wanting to sell your home. It is similar to running a race, with the goal to win, when there are only five other competitors. You have an exceptionally good chance of winning the race.
Less competition yields greater opportunity for success. We have seen it happen again and again. Homes that in any other market might have remained on the market for a long time, are quickly going into escrow.
Sellers are able to hold firm on their price, and buyers are thankful to find a home that meets their needs, so they can take advantage of the low interest rates. Even though you might be hearing on the news that prices are falling, do not believe it.
In a normal market, there is a six-month’s supply. We call that a balanced market. Sellers and buyers will have to negotiate to a “fair” price, or the buyer will move on to the next available property, since there are others to choose from.
If you are like me, I prefer things to work in my favor, so the first scenario is appealing. I enjoy competition and negotiation, but I like the feeling that I just might be holding a better hand than you. If you enjoy competition and negotiation and do not mind giving a little up, then running a race, in a normal market, is for you.
Real estate economists throughout the industry anticipate a highly active market once the stay at home mandate is removed. The sellers that have been waiting in the wings, anticipating the day that it will be “OK” to let people in their home, are poised to put their home on the market.
Based on our conversations with potential sellers, it will happen in Fallbrook. If this occurs, Fallbrook will go from being a strong “sellers’ market” to an extremely competitive market.
If you are a seller who is currently on the market for sale, good for you. Realtors have been educated on how to provide safety to sellers and buyers, while showing and selling homes.
As of May 1, San Diego County is requiring masks on everyone when you are out in public. Disposable gloves, booties and a good can of Lysol, along with “don’t touch” rules, 3-D walk-through and “Zoom” videos, have provided a path for distant or up-close viewing and communicating regarding the purchase of a home.
If you are a seller who is anticipating getting into the market once the stay at home mandate is lifted, then be ready. Get with your Realtor now, make sure your home and property are ready to go, because once the market turns back on, you do not want to be the last one to the race.
Realtors will continue to be vigilant regarding safety for our clients. Buyers and sellers can be confident that the process will continue, even if steps along the way are slightly different. Buyers and sellers will find success. The current path may just be a little easier. Have a great week and happy May.
Kim Murphy can be reached at [email protected] or (760) 415-9292 or at 130 N. Main Ave. in Fallbrook. Her broker license is #01229921, and she is on the board of directors for the California Association of Realtors.