Economic Recovery? Home Buyers Returning? What Does it Mean For Your Home?
Everyone and their brother is making predictions, but really no one knows, including me. Economists are using three types of sciences to formulate their forecasts:
Business Science – How has the economy rebounded from similar slowdowns in the past?
Health Science – When will COVID-19 be under control? Will there be another flareup of the virus this fall?
People Science – After businesses are fully operational, how long will it take American consumers to return to normal consumption patterns? (Ex: going to the movies, attending a sporting event, or flying).
Sam Khater, Chief Economist at Freddie Mac, says:
“Although the uncertainty of the crisis means forecasts of economic activity are more unclear than usual, we expect that most of the economic damage from the virus will be contained to the first half of the year. Going forward, we should see a recovery starting in the second half of 2020.”
As the nation’s economy comes back to life and businesses embrace new waves of innovation to serve their customers, the American spirit of grit, growth, and prosperity will be alive and well.
What does this economic slowdown and recovery look like for home buyers right now!?
Not a surprising trend, in mid-March the housing market saw a steep decline in buyer traffic and showings. This rapid shift in the business caused great uncertainty about what the near future would look like for real estate.
However, in recent weeks, we have seen initial positive signs that buyers are returning to the market and in need of listings to view. A positive outlook for the 2nd half of 2020 and it forecasts good news for the market.
According to a report from Zillow, web traffic to for-sale listings online has risen to levels comparable to past spring markets. While this may seem like an obvious result of people staying at home and browsing online for dream homes, showings are picking up as well.
ShowingTime recently published that scheduled showings, both virtual and in-person, have been increasing week-over-week since mid-April, 39% growth from the decline two weeks prior.
From online viewings to showings and sales, these are the first positive signs since March that we could be turning a corner.
Santa Barbara and Montecito are no exception, we have definitely seen an increase of showings, offers, and escrows in the last couple of weeks.
What does this mean if you are looking to sell your house soon?
Now is the time to prepare!