Most sellers become buyers and it’s a pro/con market on either side, observed Jay Anderson, who has been selling in South Minneapolis since 1993. He is a broker/realtor with Coldwell Banker Realty.
“Just remember, the real estate market is just that, a market. Pandemic or not there is no bad market, only bad prices.”
How would you describe the current housing market?
When COVID-19 showed up, I was surprised how many people still wanted to buy and sell in a global pandemic.
The market has not slowed and has been quite busy due to low interest rates. I’ve heard clients say: It seems that people are selling and leaving the City in droves! The flip-side is that people are buying and moving into those homes being sold. There is no exodus from Minneapolis and people are always coming and going for a multitude of reasons.
The spring market starts Jan. 1 every year for sellers due to lack of inventory. The demand is even higher this year due to historic low interest rates and the lack of inventory.
How has COVID-19 changed what people are looking for in a home?
Some motivations to move has been for new location, larger homes, more yard space and home offices. However, many buyers just want to buy a nice house in this market and will give on some wants. People buy and sell for many reasons in Minneapolis, including downsizing, and the pandemic isn’t the main driver in wants in my opinion.
What is this market like for buyers? For sellers?
This is a good market for sellers due to lack of inventory, and a good market for buyers due to interest rates. Many buyers are looking at monthly payment instead of sale price due to the historically low interest rates.
It’s often tough for buyers in this competitive market and remember, sellers most often become buyers. This may explain a log-jam in inventory. However, things are very fluid and often the market changes quickly, including a typical and normal June/July lull.
What are people doing differently to sell and buy given the pandemic concerns?
Sellers are setting ground rules for showing their property including having only the “decision makers” in the property. Masks and hand sanitizers are required, and only agents are to touch the property. The new standard is short showing times of 15 minutes versus one-hour windows that do not overlap another agents.
Buyers are driving separately and looking at a select few homes as they are being scrutinized online with more information and pictures available.
The real estate landscape is a lot different. Clients need to be re-educated and pre-pandemic expectations need to be managed. Agents are often asked not to attend inspections and closings. Purchase agreements are signed online, closings are pre-signed and now some closings are on-line.
Contact Jay at 612.819.7555 or jay@CBBurnet.com.