Crystal Brady, a Realtor, discusses with us how real estate will forever change after the pandemic. Below, you can watch or listen to the full podcast or read the blog.
Listen To The Full Podcast
Read The Blog
Crystal suggests home values will still grow, but prices will simmer down as more inventory comes onto the market and interest rates rise. There is no current evidence that a real estate bubble will burst. As more inventory comes onto the market and interest rates rise, you can expect real estate appreciation values to level off and increase normally rather than the pandemic surges.
Most markets, including Tampa, will still have a shortage of inventory. However, it is not going to be as severe as it was. Sellers are expected to cash out of their homes due to the recent boom and as this continues, sellers will have more of an inventory to choose from.
More companies are allowing people to work remotely. Therefore, buyers are considering living in different locations since they no longer have to commute.
This could change some markets as people move to different areas.
Increased Rental Rates/Renters
People moving to new states or locations often rent before purchasing a home in the new area. In Florida specifically, many out-of-state movers are coming in which leaves a high demand for rental properties.
Lastly, people who have recently sold their home to cash out of their appreciation may have to rent for a short time in order to find their new purchase.
Digital tools are making home shopping easier and faster
Digital tools, such as Zillow, are requiring better quality virtual tours in order to sell homes faster. Tools like Matterport are giving many home searchers access to these quality virtual tours.
Moreover, analytics on hot properties are increasing. This gives more eyes and demand to those homes already likely to sell soon.
Altogether, social media and virtual tools are giving Realtors access to unique ways to market their listings, open houses, and consumers have gotten used to these tools.
After the pandemic, we should see these tools stay and new tools come to fruition.
What is the overall takeaway for Buyers and sellers?
- With an increase in inventory it should give you a few more options for purchasing
- Inventory will still be low though locally so don’t think you can negotiate too much
- If you also have to sell this should take some pressure off and make it easier to find a home to buy
- With more inventory means a little more listing competition
- Don’t get greedy with pricing
- Don’t have expectations your house will sell first day on market
- Appreciation should still occur- but not as rapidly
- Make sure you keep up with quality marketing- don’t get lazy and not do profession pictures, etc
Huge thank you to Crystal Brady for joining us on Waypoint Real Talk. If you are a real estate agent and have insight to share, we would love to have you on! Just reach out!