Weekly Real Estate Recap 3.15.2020
First and foremost, I hope you are your family are well and staying healthy and sane as we adjust to these sudden changes in our communities.
Several of you have asked, “How will COVID-19 affect the real estate market?” I am monitoring our micro market very closely. New Orleans tends to be isolated from national shifts and trends, but I am constantly studying the impact of this unprecedented external factor on our marketplace.
I wanted to share an article I read this morning that presents a realistic look forward. I agree with all of the predictions, except I cannot measure the lull in immediate sales. I foresee a wane happening to our Fall and Winter markets when we start to witness the long-term effects of the virus. We are hosting our first virtual open house today.
In short, homes that are pending I see closing on or around their closing dates. Homes not under contract may see a lag depending on the buyer’s ability to qualify for a loan if their work hours are cut. Also, a percentage of buyers have lost considerable stock in the market and they may be scared to use their saved cash for a purchase. Most sellers will continue to want to sell unless they have had a job loss, or they missed out on an opportunity to buy a new home. Also, City Planning is at a halt because no applications can be processed, which will affect new builds and large renovations. The city is still dealing with the cyber attack that occurred on December 13, 2020 and rebuilding filed permits for work performed and work in progress. Developers will be on hold with their projects for an undetermined time.
Every Monday, the Witry Collective team is evaluating our contracts and how best to serve our clients. I will be in touch and, as always, reach out with questions