2nd Quarter Market Update – Covid-19 impact
Are we in a recession? The short answer is yes.
Next week they will release this information to the press. Technically there has to be 2 quarters for it to qualify.
Your next question should be. But what does that mean?
Here’s the thing… Recession DOES NOT equal housing crisis.
Harvard university reports that “Housing is a foundational element of every persons’s well-being. And with nearly a fifth of US gross domestic product rooted in housing-related expenditures, it is also critical to the well-being of our broader economy.”
“The government understand they have to support us because they didn’t last time and the country paid a price.” Steve Harney – KCM
-Stats, facts and science-
• 1. 96% of rentals are owned by mom and pap set ups only 4 % are conglomerate owned and some of these mom and pop’s may feel this pinch right now and want/need to off load some extra properties to reset their financial stability – they need buyers.
2. Leading experts suggests “We on the ride down of the V shape type recovery. It’s going to be quick going down and quick going up.” – Goldman Sachs, JP Morgan, Morgan Stanley
3. “It’s worth looking back at history to place the potential impact path of Covid-19 empirically. in fact, V-shapes monopolize landscape of prior shocks, including epidemics such as SARS, the 1968 H3N2 (Hong Kong) flu, 1958 H2N2 (Asian) flu, and 1918 Spanish flu.” – John Burns Consulting
The O’Key Group. Local Market Information
• 2019 SOLDS North East LA
Jan 1- April 16 2019 = 290 SOLD
and to go deep…
March 1-April 16 = 131
2020 SOLDS North East LA
Jan 1 – April 16 = 265 SOLD
and then for Covid -19…
March 1- April 16 = 138
• Loads of changes have been made and what are they?
1. If you are not buying in cash, we need to act now and confirm your lending potential and we have contingency periods to add for you and Covid-19 Addendums to add to contracts for you. Call me to talk more about this.
2. viewing homes have changed and we’ll go over that when we talk more in detail depending on each home.
3. BUYERS: 2021 price are projected to go up higher than previously predicted. If you have had thoughts of buying in 2020, It’s really the best time to buy right now. When we come out of this pandemic you’ll pay more for any home and building.
4. SELLERS: 2020 home increases are still slated for 3% increase. Don’t wait to sell. Next year you’ll have way more competition and foot traffic. It’s easier and less intrusive than it’s ever been to sell your home.
You may see Real Estate on shows like Million dollar listing and it can look so glamorous and cheesy.
That is not what we do. Right now The Real Estate industry such as contractors, Appraisers, Realtors, inspectors, cleaners, stagers, assistants, movers are all about supporting families that need to sell after some true loss in their family. It’s not glamorous. It’s serious, and you want serious strategy pivots with contracts, tech and advise on timing and we’re here to help.
“While housing led the recession in 2008-2009, this time it may be poised to bring us out of it.” Mark Fleming – Chief Economist at First American
Want to learn more about the specifics of your home? Give me a call for a complete analysis of your home.
Up Close with The O’Key Group
What can I write about Jo, she is to the point, trust worthy, patient and very pleasant to interact with.
I would recommend Jo any day of the year.
After a long search for my first home, I wanted to find the perfect one. Jo was patient enough to bare with... (more)
Jo O'Key is an excellent realtor. She has helped me buy and sell investment properties and she also helped me find my personal residence which was also the house of my dreams. She is quick to write offers and has great follow through and communication... (more)
We worked with Jo to buy our first home. She was extremely patient and generous with us throughout the entire process and we keep in touch to date. She's a pleasure to work with and knows the east side very well as a local resident.
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