The most frequently asked question today is how has the Covid pandemic affected real estate? The answer is a mixed bag. Nationally, sales fell off, mostly in the states that shuttered down, but in South Dakota it’s a different story.
There were people already in the process of selling and buying when the pandemic scare hit, those people continued with caution. Many others saw an opportunity with low mortgage rates and hoping to find an anxious seller willing to accept less for their home than normal, and there have been sellers wise enough to see a short supply of homes for sell to take advantage of a sellers’ market.
All in all, home sales are greater than last year. Prices in the lower bracket have increased, held steady in the mid ranges, but have lost ground in the upper bracket during the past few months.
Interesting how some agents and consumers were creative in their approach for showing their house and looking for a house. Some forecasters are stating the internet has truly arrived at taking real estate agents further out of the equation. Some think the historic method of physically viewing a home has or will be replaced with virtual walking tours. In Arizona, people are negotiating and buying homes unseen in person; once a purchase agreement is accepted, the buyer views the home for final approval of the property the day after; albeit, with a very large fallout rate.
It’s hard to believe many people will buy a home simply by watching a scripted and scrubbed video; certainly, it’s a time saving way to narrow a list of potential homes for the buyer plus save time and inconvenience for the seller. Ultimately, the new homeowner will want to make sure they see all of the house, it’s true condition, yard, and neighborhood before they solidify it satisfies their desires and develop a satisfactory dollar value.
There is no doubt new ideas for marketing will emerge and more convenience developed for both buyers and sellers. In addition, the real estate agent will become even more important if they provide greater value with marketing techniques for the seller, and more knowledge of homes and helping a buyer clarify what’s most important to them and the market value of the house. Not to mention the complicated process surrounding paperwork, negotiations, inspections, title, and the closing process.
Real estate continues to be a terrific investment as well as a place to enhance your lifestyle for years to come. The economy has taken a little hit, but it will rebound quickly and steady over the next year as jobs are replenished. Mortgage rates will stay low and we’ll see strong growth factors abound.
The Ratchford Group has a proven process to help you maximize your dollars, save you valuable time, and give you peace of mind you are doing the right thing at the right time.
Tony Ratchford, The Ratchford Group, KW Realty Sioux Falls
