While there’s still vulnerability due to COVID-19, there’s likewise trust in individuals purchasing homes and land.
Kyle Lalim works at Haugan Nelson Realty in Watertown. He said business has been influenced in light of the agriculture economy, market volatility, and travel limitations.
Most business relies upon referrals, so it’s another method to work together as Realtor’s progress from face-to-face meetings to Zoom, Lalim said. Lower interest costs and the bond market permit purchasers to purchase more. However, losing value in portfolios has implied some are trusting that things will bounce back.
“There are still people required to move and they need housing. I hope we can get to a place where we have peace of mind and figure out how to adjust to the new mindset,” he said.
While Watertown land deals eased back in March and April, the postings are 45 to 60 days behind. As a result of COVID-19, from May 1 to May 13, there was a lessening of 64% in the number of units sold contrasted with 2019. In any case, for new postings with active accounts, there was an expansion of 46.5% for April, thus far in May, it’s been 54%.
The greatest challenge is the unknown. There keeps on being interest by the individuals who are resigning and moving into twin homes, homes without any steps and condos, Lalim said. He’s positive about a recuperation in the long term.
“I reassure people that the real estate market is one of the safest investments they can make,” he said.
Al Burgard at Century 21 in Aberdeen reverberated a portion of Lalim’s comments.
“People worry about the future. The biggest hurdle to home-buying is job security,” he said. “We’ve had some deals fall through as people were worried about getting laid off from their jobs.”
In any case, there’s an expectation, as indicated by private housing numbers shared by Amy Frink, president of the Aberdeen Area Association of Realtors.
“Fewer people are listing their homes, but the ones that are selling are selling for more,” she said.
Active private listings were down 8% in April 2020 contrasted with April 2019, she said — 219 to 239. In any case, the number of homes sold this April was 42 contrasted with 33 a year ago.
In April, average sale cost was up 13% and the median sale cost was up 17%, she said.
Statistics for the year ending May 19 show essentially a similar number of active sales, however more homes selling at a greater price, she said.
Burgard said a downside to current conditions is that the real estate closings are not, at this point done inside the title organization. On the day of the end, the parties hold up in the parking lot. An agent from the title organization goes to the vehicle with a clipboard and they sign in the featured spots. It’s an indifferent procedure he trusts changes.
“The market will rebound once things normalize,” Burgard said. “I don’t think we’ll see a big boom in business, but things will move forward steadily.”
Nancy Jark with Jark Real Estate in Aberdeen stated, “Summer is always busy. We saw a very short slump in the market initially. The right time to buy is different for every buyer. Low-interest rates are one piece of the puzzle and contribute to an attractive time to look at both purchasing and refinancing.”
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Emerald Journal journalist was involved in the writing and production of this article.