Buffalo, NY (WBEN) The real estate market, like so many other sectors of the economy, has been on a roller coaster ride through the COVID pandemic.
A hot housing market was ground to a halt for a time by COVID restrictions and socially-distant regulations, but the industry adjusted and bounced back.
Now, if you've been looking to buy a home in recent weeks, you've been hard-pressed to find any listings.
Real estate experts say there are a couple of reasons for that.
Donna Littlefield of Howard Hanna Real Estate says she's looking for listings herself. "There's nothing out there, the market's so skeletal, and COVID came and scared everybody and sellers were putting on the brakes," says Littlefield, who notes the market is opening up slightly. "Boy, if you ever want to put your house on the market, now is the time to work with your realtor."
Littlefield says the market was starting to steady out when COVID hit, and sellers were afraid, and they did not want people in their homes. "This really isn't new, COVID just aggravated it," explains Littlefield.
Another reason sellers are skittish: where will they go when the sale is final?
"There's reverse contingency, and we can do that, but you may be waiting six, seven months before you find something and you lose that buyer. So, where do sellers go, that's the question," notes Littlefield. "If you've got somebody who buys your home, you can go out there and buy your home. But now, you're in that race again, and somebody selling would prefer selling to someone not hanging on them, so it's a rat race."
"It's as much perception as it is reality," says Peter Hunt of Hunt Real Estate. "If you look at the number of sales, the number in most cases in most regions of the country are up, so listings have to be coming on the market. They're just selling very quickly so it appears the existing inventory is very low." Hunt says the buyer demand has far exceeded the supply, which will make it look like there's no inventory.
A reason why demand has shot up: more first-time home buyers. "There's a larger percentage of first time buyers now than two years ago. That's because they're anxious to get in on the market before it gets too expensive," explains Hunt. He says interest rates have been low for a long time, and may stay at record lows for some time into the future, and homebuyers want to take advantage of this.
Hunt says people are anxious to get a home to make it their own, especially since people are spending more time there, following the COVID19 shutdowns of 2020.
Hunt says that means buyers have to be more competitive. "They have to stretch their willingness a price to pay, and in terms of the agreement as well," notes Hunt. He says prior to entering the market, buyers should know how much they can afford when it comes to financing. "When they're in a competitive offer situation, be as strong as they possibly can, which if they have cash through a 401k or a family, it makes your offer that much more competitive," adds Hunt.
Hunt also notes possibly taking a risk. "If you find a house you want, it's subject to an inspection. If you're willing to take a chance on a house without an inspection, it makes your offer competitive," though Hunt does not recommend that.
