03/27/2020
The Real Estate Market & COVID19
We are receiving many questions from our client base asking about how the current situation will effect the real estate market. There seems to be as much "Factual Fiction" as there is "True Facts". While none of us has a crystal ball there are some truths that we can lean on to give us some guidance in this uncertain time.
1. There is liquidity in the Mortgage Market- During the 2008 crash one of the biggest issues for real estate was the frozen secondary mortgage market. This meant there was no money to lend. Thus Closing the Real Estate Market. Last week the Federal Reserve agreed to buy an unlimited amount of Mortgage Backed Securities. THIS MEANS THE REAL ESTATE MARKET IS OPEN FOR BUSINESS!
2. People are still moving into Florida and around Florida so there are buyers out there. We are having to adjust the way we show homes and will likely rely on more virtual screenings to narrow down how many we show. There are ways to limit contact and still show property.
3. There are still people that need to sell their homes as they relocate or other life events force them to sell. Prior to this outbreak our market inventory was very low allowing for a significant appreciation in home prices. Only time will tell but at this point the inventory is still low.
4. If you run into trouble and your have an "Agency Loan" (Fannie, Freddie, FHA, VA, USDA) Call your bank immediately and explain your situation. Unlike the 2008 crisis where it took 6 to 8 weeks to make your case the banks have been instructed to issue forbearance with the phone call. Also the "Agencies" along with the Federal Government has instructed banks that during forbearance and as long as you make the modified payments they are to withhold reporting to credit reporting agencies thereby protecting your credit.
We know there are a lot of questions and concerns if you need us please call or email we would be glad to offer any advice possible or seek out answers we do not have.
Blessings, Stay Healthy, and Stay Safe
