How COVID Affects Home Buyers & Sellers
Tips on Buying or Selling in Utah
With so much uncertainty and volatility within the real estate market, it can be difficult to decide whether to buy or sell a home in Utah. You may be asking yourself whether now is the right time to put your home on the market or to buy a Utah home, or if market conditions will stabilize and improve in your favor. Your individual situation is the best barometer when making a financial decision as large as this one. One factor to consider is how COVID affects home buyers and sellers.
COVID has impacted the job market in unprecedented ways. Over the last several months, we have seen a dip in employment numbers, however those numbers are returning and we are seeing job growth with an unemployment forecast of 5.3% projected for the last part of 2020.
So what does the real estate market look like right now, and how will it impact you if you are buying or selling a home this year?
There is great news on this front. The COVID-19 pandemic has kept mortgage rates to near historic lows. Lenders have seen a reduction in home sales over the first few quarters of 2020, and it’s uncertain whether economic uncertainty has off-set the low interest rates.
However, it’s a pretty good bet that as the economy recovers and the job market regains strength, that those mortgage rates will begin to rise. So if you have been fortunate enough to retain your job during the pandemic and are in the financial position to do so, it may be best to jump on these low rates now while they last.
Utah Home Prices
This is another positive sign for Utah home sellers. Home prices have steadily increased over the last several years and while they will continue to increase, the pace of that increase will slow down due to reluctance on the part of home buyers and sellers, and also the volatility of the job market.
Utah home prices were expected to raise about 5% in 2020, but it looks as though the rate of increase will drop to about 3-4%.
Home Buyer Confidence
According to a study by OJO, buyer confidence has dropped dramatically due to three factors:
Inability to view homes
Fewer homes being placed on the market
Many buyers in Utah have delayed or stopped their timeline to buy a home in Utah due to these factors, however 20% of buyers say they have expedited their home buying search to take advantage of the low interest rates mentioned above.
How Your Utah Realty Can Help Utah Home Buyers and Sellers
Here at Your Utah Realty, we recognize that the pandemic may have you pressing pause on your real estate goals. However, we can help mitigate some of the reasons you may not be placing your home on the market or searching for a new Utah home.
Virtual tours – As a buyer or seller, you may be anxious about being around other people, whether viewing their homes or allowing people to view yours. We offer virtual tours to buyers and sellers.
Buyers can request a tour of any home listed on the Wasatch MLS and we will film the home and provide a guided tour. For sellers, we will film a virtual tour as part of your digital marketing package.
While in your home, we will practice safe social distancing measures, carefully sanitize all surfaces we come into contact with, and wear masks and shoe coverings. This way, you can showcase your home without having a flood of people walking through.
Matterport Technology – For an additional premium we will use Matterport technology to showcase your home. This allows buyers to virtually walk through your home and measure distances between things in homes, such as wall or window lengths.
Virtual meetings – We will utilize your virtual meeting platform of choice to work with you online – via Skype, Zoom, Facebook Messenger, or Microsoft Teams.