Has COVID-19 Made Homebuyers More Eager to Buy?The coronavirus pandemic doesn’t seem to be scaring off U.S. home buyers. According to a recent survey done by LendingTree, more than half (53%) of 1006 prospective homebuyers surveyed said they were more likely to buy a home within the next 12 months.
The survey showed that first-time homebuyers (73%) and millennials (66%) may be the most eager to buy within the next year. Motivating factors were the ability to save a larger down payment because of reduced spending (32%) and taking advantage of record-low mortgage rates (67%).
In a recent study from OJO Labs, 200 homebuyers were surveyed who had planned to purchase a house within six months before the COVID-19 outbreak. 45.6% of shoppers said they are motivated to expedite their moving timeline because they think they’ll get a good deal on a home, while low-interest rates are a major factor for 56.5%.
The study also revealed that as more homebuyers are stuck at home, more are realizing they need space to fit their needs. First-time homebuyers said that extra bedrooms (43.5%) and an open floor plan (45.7%) are more important than before COVID-19.
According to those surveyed by Lending Tree, nearly two-thirds (65%) of homebuyers said the pandemic had impacted how much money they plan to spend on a new home. Among the group, 44% plan to buy a less expensive home and the remaining 21% want a more expensive home.
Both reports indicated that the perception of reduced home prices (30%), low mortgage rates, and being confined in a smaller space during stay-at-home orders made homeownership more appealing.
Virtual Tours Have Come Out of The Woodwork
Not only is the pandemic prompting more people to consider homeownership, but it’s also influencing how they shop for a home. Virtual tours, 3D tours, Livestream tours, and even FaceTime tours have come out of the woodwork.
In the Lending Tree survey, 61% of homebuyers said they have virtually toured a home over the last 60 days and another 33% said that although they haven’t yet participated in a virtual tour, they are actually planning to.
The OJO Labs study indicated that virtual tours have become more valuable than prior to COVID-19 for both those delaying (42%) and those expediting (41%) the home buying process. 28% of those delaying the home buying process still report looking at listing photos and 25% are taking virtual tours of homes more now than before COVID-19.
The Impact of Stricter Credit Requirements for Mortgages
The only apparent roadblock for homebuyers was qualifying for a mortgage as 44% surveyed by Lending Tree said they were worried about qualifying due to the pandemic. First-time buyers (58%) and millennials (52%) expressed the most concern as lenders have reportedly tightened credit availability during the coronavirus outbreak.
The Mortgage Credit Availability Index (MCAI) fell by 12.2 percent to 133.5 in April. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. Although less credit access means lenders are likely to raise their minimum credit score and down payment requirements, it doesn’t mean you can’t qualify for a mortgage amid the coronavirus outbreak. You may have to shop a little harder.
It’s recommended to shop at least three lenders to find the best rates and get preapproved for a mortgage before you start looking for homes. Keep in mind that lenders are also grappling with the effects of COVID-19 and the process may move slower than normal.
Homebuying Process During A Pandemic
Partner with Top-rated Farmington Hills MI REALTOR® -Tom Gilliam
A top-rated Farmington Hills and Oakland County MI real estate agent like Tom Gilliam can show you more properties and save you thousands of dollars when buying a home. You need an agent who knows the area, processes a vast network of local connections, and has the skills to negotiate like a pro.
From first-time homebuyers to multi-million dollar investors, Tom continually strives to provide top quality service for his clients. With access to the most up-to-date MLS listings for Oakland county MI properties, Tom is able to match your lifestyle needs with the perfect home.
If you are ready to list your current property, Tom has the experience and skills necessary to handle the sale and marketing of your home for the optimum results. Tom employs the latest technology to deliver massive exposure that will drive maximum targeted response from qualified buyers.
Tom also partners with the most talented home stagers to ensure that your home is thoughtfully staged to highlight its features and amenities. With over 25 years of local real estate experience, Tom will protect your interests, advocate for you, and go above and beyond your expectations to ensure a smooth and successful transaction.
If you or someone you know is interested in buying or selling Farmington Hills MI real estate, please give Tom a call today at 248-790-5594 or you can get in touch here.
Tom Gilliam, REALTOR® RE/MAX Classic 29630 Orchard Lake Rd. Farmington Hills 48334 Call: 248-790-5594 Office: 248-737-6800 Email: Tom @ Homes2MoveYou.com License #314578
What Oakland County Home Buyers & Sellers Can Expect in 2020 Due to COVID-19: Before the pandemic hit this year, we were heading toward a busy spring season with strong economic indicators and buyers vying for a limited supply of homes. But with the pandemic sweeping across the country, we are now forced to reassess the year ahead.
According to realtor.com’s Chief Economist Danielle Hale, “COVID-19 has really dramatically changed the way the housing market is going to perform this year. We started off with the potential for the best year in more than a decade for sales. But we’re going to see ups and downs as the market grapples with an unsteady economy. This will affect buyers and sellers across the board.”
The amount of home sales has fallen over the past couple of months as the pandemic has caused many people to reevaluate their original plans to buy, sell, or potentially even move with the threat of COVID-19 looming over their heads.
That being said, a revised forecast for 2020 by realtor.com® economists says home sales will rebound in the late summer and fall due largely to millennials eager to own a home of their own.
Real estate experts are also predicting that smaller markets, more affordable cities, and surrounding suburbs could be particularly active as people reconsider their attraction to city life during a pandemic.
Those following stay-in-place orders while stuck in small-confined living spaces in pricey cities may seek out smaller cities and suburbs where they can get more bang for their buck such as more square footage and possibly even a backyard.
“The experience of being at home for a long period of time has everyone rethinking their priorities,” says Hale. “People are recognizing space is more important, so they’re looking for more affordable areas where they can have more space at the same price.”
The market will experience another downturn toward the end of 2020, according to Realtor.com. Sales of existing homes are expected to drop by around 15% this year compared with the previous year.
Realtor.com is anticipating 4.5 million sales this year, compared with 5.34 million the previous year. Their economic team had originally forecast in the latter part of 2019, that 5.25 million sales would take place in 2020.
For home sellers, there is one statistic that should give some comfort – home prices still appear to be on the rise according to recent data from Realtor.com. In the week ending April 25, the median home list price increased by 1.6% annually – compared to the previous year.
The data comes from the country’s largest metro areas. Given the turmoil in other segments of the economy, this is a positive sign and could provide reassurance regarding the stability of the housing market for those considering buying or selling real estate.
While many buyers have been eagerly anticipating massive falling prices due to the pandemic, and unlike anything we’ve seen since the Great Recession, history isn’t likely to repeat itself this time around.
The reason for this is the number of homes on the market has fallen by about 45% in April along with the demand from buyers. The current market is not experiencing an excessively abundant supply of homes for sale driving prices down, as sellers have been pulling their homes off the market. “Sellers don’t like to reduce their prices. So they decide not to sell,” says Hale.
Home construction is also expected to slow – fueling the housing shortage. The number of homes on which construction has begun is expected to drop by 11% in 2020. Before COVID-19 stalled construction sites in certain states, realtor.com had expected starts to increase by 10% in 2020.
Partner with Top-rated Oakland County MI REALTOR® – Tom Gilliam
A top-rated Oakland County MI real estate agent like Tom Gilliam can show you more properties and save you thousands when you buy a home. You need an agent who knows the area, processes a vast network of local connections, and has the skills to negotiate like a pro.
From first-time homebuyers to multi-million dollar investors, Tom continually strives to provide top quality service for his clients. With access to the most up-to-date MLS listings for Oakland county MI properties, Tom is able to match your lifestyle needs with the perfect home.
If you are ready to list your current property, Tom has the experience and skills necessary to handle the sale and marketing of your home for the best possible results. Tom employs the latest technology to deliver massive exposure for your home to drive responses from buyers.
He also partners with the most talented home stagers to ensure that your home is thoughtfully staged to showcase its features and amenities in the best possible light.
With over 25 years of local real estate experience, Tom will always protect your interests, advocate for you, and go above and beyond to ensure a smooth and successful transaction.
If you or someone you know is interested in buying or selling Oakland County MI real estate, please give Tom a call today at 248-790-5594 or you can get in touch here.
Tom Gilliam, REALTOR® RE/MAX Classic 29630 Orchard Lake Rd. Farmington Hills 48334 Call: 248-790-5594 Office: 248-737-6800 Email: Tom @ Homes2MoveYou.com License #314578
To say the economic news coming out lately has been disconcerting would be an understatement. Statistics concerning job losses, furloughs, and unemployment figures have pointed to upheaval in the global economy as a result of social distancing measures, which were put in place by governments to contain the global COVID-19 pandemic.
But according to recent data from Realtor.com, there is one statistic that should give homeowners (especially potential sellers) some comfort—home prices still appear to be on the rise. In the week ending April 25, the median home list price ticked up by 1.6% annually, compared to one year ago. The data comes from the 99 largest metropolitan areas.
To be sure, price growth was higher a few months ago, when prices were rising by over 4% prior to the lockdown. But this is still a positive sign given the turmoil in other segments of the economy, and could provide reassurance about the stability of the housing market for those considering buying or selling their property.
So why do housing prices appear to be holding steady despite uncertainty in the broader economy?
First, it could be that prices are “sticky”, according to Realtor.com Chief Economist, Danielle Hale:
“The slight increase this week is because prices are sticky. Home sellers are strongly resistant to lowering prices, and they’d gotten really close to declining, so we see a bounce-back. I don’t think this is a return to big price increases.”
The second reason might have to do with the reduction in inventory. The number of homes for sale has been on the decline for years, leading to a much publicized housing shortage in many parts of the country. Low inventory and high demand tends to drive prices up as more buyers compete for fewer houses.
And, after the pandemic hit, available inventory has plummeted. Some estimates put the decline of annual inventory at upwards of 17% compared to last year. Meanwhile, according to the Realtor.com data, the number of new listings has plummeted by a whopping 43.1%.
People are pulling their homes off the market, or waiting to list them because they’re worried about their own economic prospects, concerned with moving during such an uncertain time, or believe that the health risk of having strangers visiting their property isn’t worth it. In any event, listings have slowed, which has helped keep prices of homes that are on the market fairly high.
So, despite the constant deluge of health and economic news, home prices appear to be holding steady. This is good news for anyone who is considering selling, or wants confidence that they’ll be buying a home that has value. It might also give buyers and sellers an edge in a market where many others are choosing a “wait and see approach.”
As always, if you’re thinking about buying or selling a property, or have any real estate questions at all, don’t hesitate to reach out. Even during these difficult times, there are still great opportunities for sellers and buyers.
If you or someone you know is interested in buying or selling Oakland County MI real estate, please give Tom a call today at 248-790-5594 or you can get in touch here.
Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Call: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578
The coronavirus is completely changing the real estate industry, and stay-at-home orders have presented unique challenges for buyers. Not only are they unable to tour properties in person, but, in some areas, they also can’t walk around the neighborhood and get a feel for whether it’s the kind of neighborhood they want to call home.
But just because you can’t explore an area in person right now doesn’t mean you can’t get a feel for a potential neighborhood—and whether it’s the right fit for you, your family, and your new home.
A recent article from realtor.com outlined strategies buyers can use to “test drive” a new neighborhood while they’re sheltering in place, including:
Check out local publications and social media. Many neighborhoods have their own newspapers, magazines, or other publications, which can give you insights into the neighborhood vibe. You can also search Facebook groups or use neighborhood-specific social media apps like NextDoor to get a feel for the area.
Take a (virtual) walk. You may not be able to visit a neighborhood in person right now, but thanks to Google Street View, you can take a virtual walk and explore the area.
Call a real estate agent. A real estate agent that specializes in the area can give you key insights and details about the neighborhood, and help you determine whether an area is the right fit for what you’re looking for.
The Takeaway:
So, what does this mean for you? If you’re in the market for a new home and want to get a feel for the neighborhood, stay-at-home orders don’t have to stop you. With a little bit of creativity, you can explore neighborhoods near and far—without ever leaving the comfort and safety of your home.
If you or someone you know is interested in buying or selling Oakland County MI real estate, please give Tom a call today at 248-790-5594 or you can get in touch here.
Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Call: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #301741
First-time Homebuyers: Can I Still Buy a House in Oakland County MI During Covid-19? – If you are a first-time homebuyer and were in the market to buy a home in Oakland County prior to the COVID-19 crisis, the situation has more than likely affected your original gameplan.
It’s one thing to have never bought a house before and be in unfamiliar territory. Throw in a pandemic and the situation is now moved into deeper uncharted waters, even for the most seasoned buyer.
The COVID-19 situation has derailed millions of folk’s financial plans including buying property. But it doesn’t have to be that way.
If you were still hoping to purchase a home soon, you probably have a lot of questions like whether it’s even possible to buy a home now or tour a house, or how the pandemic has impacted home prices, and more.
The good news is that many people are still buying houses during this unprecedented time, even though things are a bit different than they were before the coronavirus changed the home buying/selling landscape.
As a first-time homebuyer during the coronavirus, here are a few things to know:
If you find a home that seems right for you, have job stability and can get financing at historically low rates, buying property might be a wise choice and the right thing to do – even now.
You Can Still Shop for a House
You can still shop for a house, but the rules for viewing a property are going to different than before COVID-19. Buyers, sellers, REALTORS, and brokers are coming up with different ways to see and show homes.
Some areas, however, have put a pause order on in-person showings all together. There are also some sellers that might be fine with you touring their house, while others might not be comfortable letting strangers in their home, even if property tours are allowed in your area.
Aside from federal and local restrictions, a lot will depend on the home sellers’ comfort levels. You can also work with an agent and have a virtual showing, where the agent walks through the property with you on Zoom, FaceTime, or some other video conferencing format.
A local real estate agent will know what buyers can and can’t do in your area, so its best to consult an agent for the most accurate, up-to-date information.
You May Need To Get Your Pre-approval Updated
While the process of getting preapproved for a loan hasn’t changed, as most buyers today do an online preapproval application, the preapproval itself has changed post-coronavirus.
Mortgage lenders are battling economic uncertainty by raising minimum credit scores, requiring higher down payments, triple-checking employment status, and even eliminating certain loan types altogether.
As some lenders increase their standards (overlays), your price range might change because your approved loan amount is lower, or you may no longer qualify for a loan at all.
You May or May Not be able to Get an Inspection
Once the house goes under contract, closing is different in today’s world. You’ll still be able to get an appraisal under current regulations, but depending on whether real estate is considered essential in your area, you may not be able to get an inspection.
If you are able to get an inspection, most likely you and your agent will not be able to attend. A number of home inspectors are now using live video chatting apps like FaceTime or Zoom to let home buyers tag along remotely. This keeps buyers at a safe distance for home inspections.
More Buyers Are Doing eClosings
Digital real estate closings or eClosings, give buyers and sellers the ability to sign settlement documents electronically—meaning parties don’t have to meet in a room to close the deal.
Most eClosings are orchestrated by title agents, who often lead individuals through the required paperwork by video conferencing. Most states are now offering electronic notarizations. This map from settlement software company PropLogix shows what states allow digital closings.
Partner with Top-rated Oakland County MI REALTOR® – Tom Gilliam
Whether you are looking for homes for sale in Oakland County MI or you are ready to list your current property, experience matters most in a changing market.
With over 25 years of local experience, Tom provides the kind of knowledge, skills, dedication, and personalized service you need and deserve.
As your personal agent, Tom will protect your interests, advocate for you, and go above and beyond to ensure a smooth and successful transaction.
If you or someone you know is interested in buying or selling Oakland County MI real estate, please give Tom a call today at 248-790-5594 or you can get in touch here.
Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Call: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #301741
Should I Sell My Farmington Hills Home During COVID-19 Crisis or Wait?
With the COVID-19 pandemic causing uncertainty in the economy and housing market, some Farmington Hills home sellers are asking themselves: “should I sell my home right now or should I wait?” Some sellers are choosing to wait it out in hopes that the situation will improve in the coming months.
Not everyone, however, has the luxury to take the wait-and-see approach due to job relocation, growing family needs, facing a different financial situation, or some other personal reason.
Although selling a home now and in the near future is going to look a lot different than it did only a few months ago, people haven’t stopped selling houses altogether and real estate transactions are still moving forward. Many sellers are still listing their homes, and buyers are still buying them.
In late March, the U.S. Department of Homeland Security declared residential real estate sales an “essential service” that will be allowed to continue.
That being said, you should check with your REALTOR® or local government for what’s allowed in your area, and keep in mind that things could change depending on how the coronavirus situation progresses.
Even if real estate businesses are considered essential, they could still have restrictions in some places such as prohibited gatherings exceeding a certain number of people.
So, you couldn’t have, say, more than 10 people in an open house if such a crowd is prohibited. In certain areas, in-person home showings are still taking place, although how they are held and how many people are allowed to attend has changed.
Ensure that less than 10 people are touring the home at any given time, and consider only allowing one buyer group to tour the home at a time.
Be sure that guests maintain social distancing of six or more feet apart, and require potential buyers to wash their hands or to use an alcohol-based hand sanitizer immediately upon entry and to remove shoes/cover footwear with booties.
Be sure to check with your client before using any cleaning products, and recommend that your client disinfect their home after the open house, especially commonly touched areas like doorknobs and faucet handles.
Alternative Ways to Market Your Farmington Hills Real Estate
Home showings of any kind, including open houses and even private showings, are not allowed under Michigan’s current stay-at-home order. In response, REALTORS® are getting creative, offering tours through 3D-photo or video, Facebook Live, Zoom, and other avenues.
While virtual tours and showings are a great way to keep home sellers and buyers safe, this new reality has raised the bar on how homes should be presented and marketed online.
A few nice photos of your home may not be enough during this time. You only get one chance at a first impression, so you don’t want to be using poorly shot and lit iPhone photos and videos.
Make sure the real estate agent you hire is well-versed in digital technologies that will be used to show off your home in the best possible light.
Some Homes May be Easier to Sell than Others During COVID-19
Before you list, ask your REALTOR® how likely your home is to sell in this unusual market. Some properties have a better chance of selling than others based on factors such as:
Price Point – If it’s a beautiful home at a medium price point in your area and it’s priced competitively and staged well, it will have a better chance of selling at this time. Buyers at higher price points who have large holdings in the equity markets may postpone large real estate transactions as they wait for stocks to recover from the market plunge.
Online Presence and Marketability – In today’s market, your home must shine in online listing photos and videos to convince buyers to leave their house to view it in-person. Now, more than ever, you have to make sure you have professional photography because that’s what people are seeing online. They are not going to open houses and not driving by as much.
Vacant vs. Occupied – Vacant properties are receiving the most attention due to ease of viewing while tenant occupied homes are proving more difficult to sell. Tenants have rights, and many don’t want people coming through their house. With “offer subject to interior inspection,” only buyers who make an offer on the property are permitted to view it in-person. While more common to see for tenant-occupied properties, owner-occupied homes may be listed as “offer subject to interior inspection,” as well.
A House Sold During Coronavirus Pandemic
If you sell your Farmington Hills home during the COVID-19 pandemic, your contract may include a coronavirus clause that permits closing extensions and home sale cancellations without legal or financial repercussions. For sellers, this means the buyer may leave the deal without losing their earnest money.
To protect your interests, you can negotiate in what scenarios the buyer keeps their earnest money. For instance, you can amend the clause to state that the buyer must forfeit their earnest money if they withdraw their offer with no reasonable cause.
The Takeaway
For the best insight on how the coronavirus Pandemic is affecting the local market, reach out to a top real estate agent that specializes in your area.
Top agents track daily updates and evolving COVID-19 regulations, and can help you determine whether your Farmington Hills property is marketable at this time as well as answer any questions you may have, and accommodate any special needs such as a contactless home assessment.
Partner with Farmington Hills MI REALTOR® – Tom Gilliam
Whether you are looking for homes for sale in the Farmington Hills or you are ready to list your current property, experience matters most in a changing market.
With over 25 years of local experience, Tom provides the kind of knowledge, skills, dedication, and personalized service you need and deserve.
As your personal agent, Tom will protect your interests, advocate for you, and go above and beyond to ensure a smooth and successful transaction.
If you or someone you know is interested in buying or selling Farmington Hills real estate, please give Tom a call today at 248-790-5594 or you can get in touch here.
Tom Gilliam, REALTOR® RE/MAX Classic 29630 Orchard Lake Rd. Farmington Hills 48334 Call: 248-790-5594 Office: 248-737-6800 Email: Tom @ Homes2MoveYou.com License #301741
Whether you are looking for homes for sale in Oakland County MI or you are ready to list your current property, experience matters most in a changing market.
