ANTICIPATION

It may seem like forever that we have been following the stay-at-home guidelines for the COVID-19 virus and perhaps some out there are going just a little stir crazy, but the end is closer than you may think.

ANTICIPATION is now the watch word for those who long to be back to work or to be able to interact with other friends and neighbors.  We anticipate a return to life as we once enjoyed; but let us be honest it will take some time for those days to return.

If you are anticipating selling a home during this time period, do not be deterred from moving forward.  Buyers are still in the market and are looking for homes to purchase.  Sellers may find that they will be actively negotiating the sale price, but with a limited inventory of available homes and a need to sell concessions will be made on both sides of the deal. 

Mortgage rates continue to remain at an unprecedented low and although the market may have tightened some of its qualification guidelines, lenders are still processing loans for qualified buyers.  With the memory of the Great Recession lurking in the background and escalating unemployment, underwriters want to safeguard banks from bad debts.

ANTICIPATION is healthy and keeps us stimulated and moving forward.  Public health and safety are still of great concern to our elected leaders as plans are unfolding for opening back up the economy.  During the next few days and weeks somethings will return and some will not.  During this time, it is even more important that "cooler heads prevail".  

WHEN WILL THE U.S. HOUSING MARKET RETURN?

The question is much simpler than the answer. The pandemic has taken a toll on the U.S. housing market bringing it to a near stand-still. It is true some sellers and buyers are completing deals, but not to the pre-pandemic volume.

WHAT NEEDS TO TAKE PLACE?

There are three key “events” that need to take place before seeing the U.S. housing Market return to pre-pandemic days.

1.  A marked reduction in the number of individuals infected with the virus enabling people to resume  "normal daily activities" and interactions.

2.  A jump-start of the American economy over two quarters including re-employment and increased productivity in manufacturing and service sectors.

3.  Steady reduction of unemployment levels over the same two quarters focused on getting Americans back to work.

HOUSING MARKET EBB AND FLOW

The housing market never really comes to a total and complete stop. Like a river, it ebbs and flows in the current of America’s economy. Movement may be nothing more than a trickle, but it is still moving and there are properties to be bought and sold all the time.

For some it may appear things are moving too slow, but remember, the American economy is like a huge boulder that needs to gain momentum before it sees significant progress.  Once it gains traction its ability to grow is unlimited.

A Look at the U.S. Housing Market and COVID-19

It has been several months now since the initial outbreak of COVID-19 in China.  The global impact of this virus is still being written today.  Across borders government leaders are working individually and collectively to find a way to eradicate this foe.

Thousands of citizens have succumbed to this virus.  The economies of the world have moved from robust and thriving to a stagnated trickle. Many businesses have been forced to shut their doors to employees and those still functioning work at limited capacity.

The U.S. Housing Market is not immune to the impact of COVID-19.  Although homes are still being bought and sold; for all practical purposes the market has been put on pause.

Efforts to off-set this pause include a lowering of mortgage rates and slight price reductions of existing homes on the market.  This makes sense since price reductions are harder to change when there are few transactions.  The federal government has implemented a moratorium on foreclosures and directed mortgage services to offer homeowners assistance on mortgages backed by Freddie Mac, Fannie Mae or the Federal Housing Authority.

What will be the “new normal”?  No one person has that answer yet, but like most we are aware that lives have been altered by COVID-19.  Here are a few things to consider as you try to find a new normal for the housing market.

1.   What will be the financial impact on the U.S. economy in terms of lost wages, lost productivity and lost manpower?

2.   How long will it take to see a full recovery of the economy and unemployment levels of pre-COVID-19?

3.   How long will the mortgage industry be able to financially withstand the moratorium and what other tools are available to safeguard home ownership?

4.   What will be the housing market mindset post COVID-19?  Will buyers be ready to return to the market once again or will they stand on the sidelines?

All good questions and all that will need answers.  Over the upcoming weeks we will all watch the “new normal” for the U.S. housing market go through a metamorphosis.  Like the phoenix emerging from the ashes, the U.S. housing will rise again.  We shall all watch expectantly!

MANAGE YOUR MIND TO MANAGE YOUR DAY

As human beings we are highly capable of adapting to circumstances and surrounding in order to exist.  The pandemic that has swept across the globe, like a tsunami, is the top news story. Yet with all the Covid-19 news flooding the air waves, I still need to meet my needs and the needs of my family.  How can I manage my mind to manage my day?

1.  Set some ground rules regarding your Covid-19 news “downloads”.  Select a news source you trust and believe is providing factual information regarding the pandemic.  Set a designated time to listen to that news source regarding Covid-19 and other related items only.  You need time to process the information and make personal applications for you and your family.

2.  Set a daily schedule of activities for you and your family while you are staying at home.  Children need time to do class work online, hopefully with minimal supervision, while you need time to make contacts with clients and get updates on various listings from staff members.

3.  Set aside time to engage in some form of physical exercise.  If you are unable to go to a local gym, exercise with a virtual fitness app or program is a viable alternative.  You can include your family too and help take a “bite out of boredom” with a walk in the park or around the block.  Cycling is also a good way to get the whole family outdoors at one time.

4.  Set aside some time each day to evaluate the present and prepare for the future.  Whether you are a realtor, businessperson, a tradesman or entertainer, there will be a day very shortly when Covid-19 will be a memory.  Evaluating and planning are great, but you still need to set those plans in motion to prepare you for the opportunities that will come your way after this crisis is over.  As someone once said, “You need to look around the curve in the road to see your future.”

Manage your mind to manage your day.  Stay focused by following one course of action until you succeed. Position yourself now for the next phase of your life after the pandemic becomes a footnote in history.