Is it a good idea to buy or sell a home in 2020?

The question of whether to buy or sell a home never gets old, but during the COVID-19 pandemic, I’m hearing it asked with even more frequency and urgency. 

About seven months ago, our world as we knew it came to an abrupt halt and left countless questions about how to keep our families safe. Like so many, I also wondered how my job might be impacted by this crisis. On one of our recent weekly office calls, my broker mentioned that our office sold 91.7 million dollars (!) in real estate in July. I had to cross-check that number myself to be sure I heard it correctly. That’s an incredible amount of real estate for one office. Summer is usually the busiest time of year anyway, but to think that we reached those kinds of numbers in a pandemic is very telling! Personally, I’m on track to finish out 2020 with the same numbers as I did in 2019. It’s undeniable that real estate is continuing to maintain its value and that buyers and sellers are still making win-win deals even through the uncertain climate.

I don’t want to sound completely ignorant of some of the real disparity going on in America right now, however. I do believe that some people are struggling and that there is a real income divide for many. And in San Antonio, I certainly believe that some areas are being hit harder than others. Rather than ignore or completely deny this reality, I choose to see and be mindful of the climate we’re in so that I can provide insight to my clients as best I can. 

We don’t know what lies ahead, but I can share what I’ve observed so far and my professional opinion on buying or selling in 2020. I’ve questioned several of my own decisions in the midst of all this (as we all have), but I’ve come to a place of comfort in my own personal balance of safety and risk, and getting to that place looks different for everyone. So above all, I just want to remind people to have grace with themselves, to know that everyone’s timeline is different (especially for big decisions like buying or selling a home), and that’s okay!

BUYERS

First time home buying is definitely UP. The younger generation feels like now is as good a time as any to start the home ownership process. It may be that before the pandemic, they felt like home ownership was overrated or too much of a commitment—but then, after spending 4 months in an apartment or at mom’s house, they are realizing the importance of a space to call their own.

It’s also important to note that mortgage rates are at record lows, dropping to 2.88% on a 30 year fixed and 2.44% on a 15 year. Mortgage applications are up 22% over last year. All of these things tell you that consumer confidence is there. 

The wish lists of potential buyers are rearranging and changing due to the pandemic, too. Pre-pandemic, my clients were already requesting a home office space, but that request has become even more important as more people are working successfully from home. People need and want a space to conduct their work uninterrupted, while also fostering creativity. 

Another thing I’m predicting is that rural/small town America is coming back, and strong. Just as home offices are in demand, getting away from the city (and even suburbs) is also an increasing request from buyers. I suspect this trend will last some time, as we’re coming off of at least a decade of metro movement closer to cities for jobs and higher education. Smaller towns sometimes offer a better value for a first time home buyer or even a move up for a retirement buyer. And again, with many people now working from home indefinitely, moving closer to family or returning to a hometown seems more possible than ever. 

With the opportunity for more time at home comes the opportunity for more at-home hobbies. Having a bigger yard for a pool, a garden, or backyard chickens is often crossing the minds of buyers. People are slowing down and starting to understand and appreciate the benefits that home hobbies can provide. 

SELLERS 

People have spent more time than they had anticipated in their houses this year. Some are enjoying a renewed appreciation for the home they have created, discovering new things about their neighborhood or town. My husband recently discovered some mountain biking trails that he can access by bike from our front door! 

But others are realizing they need spaces or functions that can’t be provided by their current house anymore. So how does putting a home up for sale look in a pandemic?

Homes are selling at value and higher, especially here in Texas. You’ve all read the headlines and heard the gossip that Californians are invading Texas… well, that may be true, but we are also seeing an influx of people from other states moving into Texas, citing the cost of living, more space, the great outdoors, and even Texas BBQ as reasons for the move. 😉 With the commute to work becoming less important (or even non-existent), sellers looking for new property aren’t as limited by location; so it’s the same for potential buyers, too. With more buyers coming into the market, sellers are continuing to retain the equity in their home. If you’ve been thinking of a move up, with rates low and values holding, now is the perfect time to make those moves… literally!

These points just scratch the surface of factors to consider if buying or selling a home this year, so if you have any questions or would like more details, please don’t hesitate to contact me. Be safe and happy September!