How The Coronavirus Is Impacting The Real Estate Market in Raymore
Please be aware that there has been minimal influence on the local Real Estate market from COVID-19. The current house inventory in Cass County and nearby Jackson County is at record lows; whether you want to sell or purchase a property in the Eagle Glen development or the Creekmoor Community. In Raymore, now is a terrific time to sell and purchase a property. Make sure you don’t allow the coronavirus to stop you from pursuing your desire to become a homeowner or looking to expand your family’s living space.
Many people have died since the coronavirus was declared a pandemic by the WHO in early March, and the measures taken to stop the virus’ spread have been extremely difficult for our local Raymore businesses and have hampered entire Kansas City area industries, as well as putting many residents out of a job. Even while the real estate business has fared better than others, it feels the effects of the recession. Let’s examine how the coronavirus is affecting Raymore’s real estate market.
The Effects of Coronavirus on the Real Estate Industry: A Quick Overview
The online real estate company Zillow recently polled to investigate how prior pandemics have influenced real estate. According to the researchers, “during earlier pandemics, although property sales fell drastically, the price of homes remained roughly the same or decreased.” It is more difficult for prices to fluctuate in a market with few transactions. The property market has been placed on hold because of pandemics.
When we look at how the coronavirus affects the Raymore real estate market, it seems that this pattern is repeating itself. There has been a 40% decline in traffic to the main online listing sites and a 70% drop in new listings in key urban regions.
The restriction on in-person house showings has negatively impacted, albeit the specifics may vary depending on where you live. Still, brokers and companies have discovered various digital solutions to keep some life in the real estate market alive.
The financial effect of the coronavirus on the real estate market is also being felt. The federal government has frozen foreclosures because of the high unemployment rate. “direct mortgage servicers were to grant FreddieMac, Fannie Mae, or FHA-backed mortgages deferment or lower payments.”
Mortgage rates are falling, but the requirements to get a loan are rising.
There is no doubt that the coronavirus affects mortgage rates.
Two emergency interest rate cuts have been made since the coronavirus epidemic to reduce the yield on Treasury bonds close to zero percent.” Interest rates may also be affected by a stock market meltdown. Investors sell their stocks and purchase bonds when they believe the stock market is too dangerous, such as right now. Bond prices rise when more people buy them in response to rising demand. The yield, a measure of interest payments as a percentage of the price of bonds, decreases as the price of bonds rises. “Mortgage rates are lower when bond yields are lower.”
Mortgage interest rates have fallen to a record low of just over 3% due to all this. In addition, lending standards are becoming more stringent even as rates fall. A 700 credit score and a 20% down payment are now required by Chase to get a mortgage.
Raymore, Missouri’s Housing Market
Look at the Raymore market and other comparable areas to obtain an accurate picture of how the coronavirus affects the real estate market.
As if the housing market wasn’t already congested before the epidemic struck. The demand for homes in the Raymore region, including Eagle Glen, was outpacing the supply, soaring prices. In other regions, like Creekmoor, prices were nearing all-time highs while supply was reaching record lows. At year’s end, supplies were even tighter (although there was a spike in supply earlier in 2019).
In2020, the coronavirus is making things even worse. When it comes to housing issues, to counteract COVID-19, we have entered a recession with rising unemployment, firms shutting, and slashed salaries. – As a consequence, fewer people are applying for mortgages.
Even when demand is decreasing, it would seem that supply can keep up. However, this is not the case. Houses are still being purchased by people who need somewhere to live. Recessions don’t modify these conditions for individuals, according to industry analysts. A full-blown recession doesn’t have a chance against the property market.
What’s in store for the future?
In every part of the nation, the coronavirus is causing havoc. “Everything has altered and fresh information every day following what the landscape for home buying may look like when the epidemic passes,” according to diligent observers. While earlier pandemics have shown that housing values aren’t expected to decline substantially, the economic impact of COVID-19 might be far-reaching,”
If the mortgage payment suspension is extended, the mortgage sector might be plunged into disarray and face a liquidity crisis. Lenders may be unable to provide loans to first-time homeowners.
There is a silver lining, though.
One week after a community receives a shelter-in-place order, its new house listings fall to a new low,” Mike DelPrete, an academic and real estate consultant, said in an academic journal. There is a steady increase in the number of new house listings after about a month or two. As a metric of housing supply, new property listings are important.”
It’s still possible that the recovery will be slow. Of course, the real estate market’s response to the coronavirus will significantly influence this outcome.
Even More, Reasons to Use a Local Agent
In Raymore and the surrounding region, the market is still going strong. Buyers and sellers in Cass County are still going through the motions. Changing your Raymore real estate ideas is unnecessary. Buying or selling a property in Raymore or the nearby areas, such as Creekmoor or Eagle Glen, is still an option, and now is a wonderful time.
The coronavirus and the measures to counteract it have had a significant effect on the real estate business. However, the coronavirus has a smaller influence on Raymore’s real estate market than other firms and sectors. Both buyers and sellers are having a harder time navigating the present market since loans take longer to finalize. In a market where inventory is scarce, having a knowledgeable local agent on your side may make all the difference in finding a home for sale. You may learn more about Dan Edson’s services by contacting him. At (816) 695-7352, you may reach him.