Originally posted by @Marcus Auerbach:
Originally posted by @Deneuve Brutus:
News articles are already bringing out the term recession. I've been preparing my primary residence for sale in my market. It has shows signs of slowing down average days on market has gone up. There was recently a case reported in the county. I-95 is usually packed, an hour drive took me 35 minutes yesterday.
It's a combination of fear and survival instincts people are experiencing. I'll be ample ready with my home offering owner-financing and rental options. When the market slows people stay put and usually don't spend money on frivolous things. Obviously, I'm not too worried about the situation getting any worst.
Days on market is a lagging indicator, so it would be too soon to see Covid19 effects. How many DOM do you have? Long term historical average is about 180... back in 2010 we have over 400. If you DOM go from 20 to 40 that's double but still a ultra hot hot market.
So why would you sell your home now? The fear is the greatest before the night and you loose about 7% - 8% in the process as cost of sales and moving. And then you are buying something or renting? What have you achieved?
Keep calm and stay put!
Real Estate is a hard asset - like gold - and usually does well in times of recession and when paper assets crash. When you look at the last 5 recessions, real estate did very well during 4 of them, except 2008, but that was a mortgage and housing crash that later became a recession.
This event is much like a hurricane: everything shuts down and goes in shelter mode. This is differnet in two ways: it will take longer, which is bad, and there is no physical destruction, which is good.
We will get used to the new normal by April or May. It's a shift and like every shift it creates an opportunity. There will be a re-bound economy in 2021.
I should've given a bit of background. I've been expecting orders since August 2019. I received them late January while the storm was brewing , we've been in the processing of PCS since. I was looking at numbers discussed at my local REIA group compared to 2019 and comparing to what's being offered on my market currently. We haven't put the house up for sell yet, landscaping needs to be done, I'll be getting the measurements for design today. I wish I could shred my rental lease and just stay put however as they say, duty calls.
I agree the market will rebound in 2021, and it is very much like a hurricane. I see this as an opportunity as I've been doing research on owner-financing and working with notes.
