Even as stocks whipsaw and unemployment rates hover around record highs, the US housing market is making a surprising comeback. Across the US, home prices are surging and homebuying is up more than 16 percent. Here in Alaska specifically, the real estate market is flourishing.
Right now, the number of properties for sale is relatively low. At the same time, low interest rates mean increased buying power, which is positive for both buyers and sellers.
The Pros and Cons of Buying During the Pandemic
Even with these positive signs, homeowners and homebuyers may remain reluctant to sell in these uncertain times. If your prospective clients are unsure whether to buy or sell Alaska real estate during COVID-19, here are some pros and cons to discuss:
Pro: Less Competition
As we mentioned, the number of homes on the Alaska market right now is low. A small inventory translates to less competition, giving sellers more wiggle room to negotiate on price, terms, and dates.
Pro: Low Interest Rates
Thanks to the federal rate cut, interest rates are currently at historic lows. Low interest rates benefit both buyers and sellers: With lower payments, buyers may qualify for bigger, more modern homes, while sellers can more easily find a new home when their previous home is sold.
Con: Economic Uncertainty
With many Americans losing their jobs, more and more buyers may not be able to qualify for loans. This could result in pending sales having to be canceled. Still, with interest rates as low as they are, if clients can qualify for loans, there has never been a better time.
Con: Fewer Buyers
In addition to fewer houses on the market, there may also be fewer buyers. With Alaskans concerned for their health, safety, and finances, you may find that less people are interested in shopping for a home. However, this seems to be largely offset by the dearth of properties currently on the market.
Additionally, with more time at home, the people who are thinking of purchasing a home may spend more time scouring the internet for a property. This creates an opportunity for more viewers to find your online listing. If you have an eye-catching listing with professional images and a virtual tour, you could be in a position to benefit.
Pro/Con: New Realities for Property Showings
In the age of social distancing, arranging showings can be a challenge. Sellers and buyers alike may not be comfortable with traditional in-person viewings.
On the flip side, though, more virtual showings can actually make things easier — for both sides. Buyers don’t have to spend hours driving around neighborhoods touring properties and worrying about the possibility of catching the virus. And sellers don’t have to plan their lives around showings and vacate the premises on short notice.
What it does mean, though, is that right now it is particularly important to have high-quality, professional photographs and videos ready. If you want to elevate your listings to the next level with features like virtual or 3D tours, we invite you to contact DMD Real Estate Photography.
Buying or selling a home during the COVID-19 pandemic does not come without challenges. However, savvy realtors and well-informed homeowners and buyers can address these challenges head-on and even turn them into positives.