Some semblance of normalcy is slowly returning in the Sarasota area. Restaurants, beaches and retail shops have reopened though with some restrictions due to the lingering effects of Covid-19.
As encouraging, there are some signs and sentiments too that the difficulties in our real estate market will soon ease. Our Judy Kepecz-Hays team shares much of this optimism, as we recently notched two pending condo sales in Lido Key.
Covid-19 may even have brought a silver lining to the market in accelerating the real estate agents’ shift to doing business with clients more on a virtual basis. This, in turn, has made transactions moving forward faster.
Wellspring of Strength
A source of strength for the local property market can also be drawn from the 2020 theme “together we win” of Realtor Association of Sarasota and Manatee (RASM). Set by RASM president David Clapp, this stand, adopted even before the pandemic’s outbreak in the U.S, is certainly a morale booster for RASM’s 7,000 members. Expect the delivery of our services shall remain sharply focused on excellence.
Many in the real estate business, including our Judy Kepecz-Hays team, are one with the expectation of the RASM president that the impact of Covid-19 on the property market would only be for the short-term. Already, there are signs that the local market is gradually bouncing back.
A significant number of transactions, including our team’s two pending sales, are still proceeding. Activity on the market has picked up in recent weeks, which includes a notable increase in new sales listings.
Sound Market Fundamentals
Experience gained from the housing downturn during the Great Recession also indicates a quicker turnaround, according to the RASM president. He noted that the current fundamentals are so different from those that housing collapse that triggered the Great Recession.
The real estate industry then had an oversupply of homes, as developers overbuilt their inventories. The mortgage industry was also overextended and weak at that time because of sub-prime lending.
As a result of this experience, mortgage standards are now stricter. Lenders are also currently in relatively in better shape, and the economic impact now isn’t directly related to real estate problems. As the economy continues to reopen, a significant demand for real estate could be expected.
Before the Covid-19 pandemic, newly built homes are in short supply, and inventory of resale residences are low as well. With this low-supply scenario, we can expect an upsurge in demand once the uncertainties of Covid-19 are finally lifted.
The pandemic hitting hard on crowded cities may also encourage buying shift to the less densely populated areas like Sarasota and Manatee counties. Besides this local appeal, the current low mortgage rates are also likely to bring more home buyers to the market, and thereby further strengthen demand for local residential properties.
This time when the market bids to regain its strength can be a perfect opportunity for sellers to engage the market. Our Judy Kepecz-Hays team is also ready to assist prospective buyers, using our wide industry network and up-to-date marketing technologies. We can easily connect with you online whether you’re selling or buying a residential property.