by Marc Dosik
sponsored guest contributor

Many people have been asking me how the Covid-19 pandemic is affecting the real estate market. As recently as March 13th, Urban Turf was reporting that there had not been much of an impact. But things are changing fast. The spring real estate market had started early this year, with open houses normal two weekends ago. The only noticeable difference was more use of hand sanitizer and less hand-shaking.

Now… there is some hesitation on the part of both buyers and sellers, for different reasons. Some buyers feel uncertain about their employment as the virus threatens to close down workplaces. Sellers wonder if they should list their houses later when people are venturing out, bringing more demand.

While some buyers and sellers react this way, there are others who see this time as a golden opportunity.

As the market softens, buyers see the chance to get a good deal, while sellers realize there are fewer competing listings, increasing demand for their homes. While some people hold back on their plans to buy or sell, others move ahead, hoping this unique scenario will work in their favor.

Mortgage rates are at a historic low, which boosted the volume of mortgage applications just two weeks ago. Both supply and demand are expected to take a hit, at least in the short term, especially as fewer people are attending open houses. It appears that only the most serious and ready buyers are visiting homes. There are still competing offers on homes, but fewer than a few weeks ago.

Another good measure of buyer demand and real estate activity are home inspection bookings. In Virginia and Maryland, home inspection bookings are down 15% from where they were last week, and down 20% nationally. Fortunately, appraisers and loan underwriters are operational this week – there appear to be no shutdowns due to the virus. Transactions can keep moving.

We plan to keep monitoring the effect of the Corona pandemic on the local real estate market and provide updates in the coming weeks. Stay safe and healthy!

Marc Dosik
Associate Broker, Fed City Team at Century 21 Redwood Realty
843 Upshur Street NW
301-910-9976
202-543-7283
marc@marcdosik.com
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